Update: Ace American Ins. Co. v. Fireman’s Fund Ins. Co. Settled

We previously reported that the California Supreme Court would be addressing the split in California authority on the issue of whether an excess insurer may sue a primary insurer for failure to settle a case within primary limits in the absence of an excess judgment against the insured.  Unfortunately, although the Court granted review of the decision in Ace American Ins. Co. v. Fireman’s Fund Ins. Co., previously published at 2 Cal.App.5th 159, last November, the case settled while pending before the Supreme Court and the case was dismissed on March 15, 2017.  As review was granted in November, after the amendment of California Rule of Court 8.1105 became effective, the dismissal of review means that the Ace American case remains published and is fully citable and has binding or precedential effect.

Cheryl A. Orr is a partner with Musick, Peeler & Garrett in its Los Angeles office.  Her full bio and contact information can be found at:  http://www.musickpeeler.com/professional/Cheryl_Orr.