Michael Darnell Wise was injured when he drove a forklift truck at work. While Mr. Wise touched car parts, fished the forklift and fell from a dock or ramp that led up to it, leaving Mr. Wise attached under the forklift. At the time of the accident, Mr. Wise for Central Coast Distribution, LLC d / b / a Mighty Auto Parts. He was seriously injured and eventually settled with the defendant for $ 3.5 million paid for by various insurance companies. Sedan, i St. Paul Fire And Marine Insurance Company v Pennsylvania National Mutual Casualty Insurance Company Case No. 2: 19-cv-05471-JDW, United States District Court of the Eastern District of Pennsylvania (March 8, 2021) Paul, as a redundant insurer, tried to get compensation for what it paid Mr. Wise from other insurance companies that were alleged to be primary for St. Paul's surplus insurance.
Carefully read the words used by the parties when entering into various contracts, including insurance contracts, clearing the parties' arguments and revealing a single way forward.
Under a Standard Industrial Leasing Form, Central Coast leased a warehouse from First Industrial, LP to operate in Harrisburg, Pennsylvania. The lease gave Central Coast a lease over a certain portion of the warehouse and gave it access to common areas on the property, including "loading areas." The lease agreement required both Central Coast and First Industrial to maintain insurance and included an exemption from the subrogation provision which provided that each party would have their respective insurance policies approved to prove compliance with an exemption from subrogation.
Central Coast & # 39 ;s Insurance Policy
Central Coast purchased two current insurances from Penn National. The first is a business owner's liability protection policy, a policy that has a liability limit of $ 1,000,000 per event. Central Coast also purchased a commercial umbrella liability policy from Penn National, a policy with a liability limit of $ 2,000,000 per event ("Penn National Umbrella Policy").
First Industry's insurance policy
First Industrial also purchased two insurances relating to this dispute. It purchased a general liability policy from the Federal Insurance Company ("FIC") with a liability limit of $ 1,000,000 per event. It also purchased a special commercial umbrella liability policy from St. Paul, ("St. Paul Policy"). St. Paul agreed to pay for First Industrial "any sums in excess of the withheld limit which [First Industrial] becomes legally obligated to pay as damages due to liability under law … due to: Personal injury … which occurs under the policy Period and caused by an occurrence [.] "
The St. Paul insurance has a" Other insurance "provision which provides:" If other insurance applies to claims that are also covered by this insurance, this insurance will apply over, and shall not contribute to the second insurance, whether it is primary, excessive, conditional or for any other reason. However, this provision does not apply if the other insurance is specifically written to exceed this insurance.