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United States Fidelity & Guaranty Co v. Coastal Refining & Marketing, Inc., Coastal Offshore Insurance

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OPINION

In this subrogation case, appellant United States Fidelity & Guaranty Co. (“USF&G”) challenges a judgment requiring it to pay the limits of its primary and umbrella policies to its insured and two co-insurers. Although we do not agree that the subrogation claims are barred as USF&G contends or that the trial court abused its discretion in awarding attorney’s fees, USF&G is correct in asserting that a portion of the loss should have been prorated among the excess insurers. We therefore reverse the judgment and remand the case to the trial court with instructions to reduce the damage award and to reevaluate the award of attorney’s fees and costs in light of the reduced damages awarded.

I. FACTUAL AND PROCEDURAL BACKGROUND

 
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