In the decision Sport Rock Intern. Inc. v. American Cas. Co. of Reading, Pa., —N.Y.S.2d—, 2009 WL 1290266 (1st Dept., May 12, 2009) the Appellate Division, First Department, broadly addressed the appropriate allocation of defense costs between two primary liability insurance policies, where one policy’s “other insurance” clause made it excess to the other.
As more fully set forth herein, the majority consciously highlighted its conflict with another First Department decision that was recently decided, revealed some considerable friction among the judges, but nevertheless provided some clarity to insurance carriers and their counsel who wish to give effect to the “other insurance” provisions in their policies.
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