Cases

GMSR secured a significant win in the California Supreme Court on behalf of its client, Truck Insurance Exchange.  The Court resolved a key insurance coverage question left open in Montrose III—whether first-level excess insurers’ indemnity obligations attach only after exhaustion of all primary policies across multiple policy periods (“horizontal exhaustion”), or upon exhaustion of the directly underlying primary policy in the same period (“vertical exhaustion”).

The Court agreed with Truck and GMSR, holding that the policy language supports vertical exhaustion.  This important ruling ensures consistency in the interpretation of excess policies and strengthens Truck’s equitable contribution claims against other insurers.

To read the California Supreme Court Opinion, click HERE.