Petition for Review Denied in Qualcomm
The California Supreme Court denied review in Qualcomm, Inc. v. Certain Underwriters at Lloyds, London (2008) 161 Cal.App.4th 184 (reported earlier in this blog). In Qualcomm, the California appellate ruled that an insured which settles with its primary insurers for less than policy limits, cannot collect from an excess insurance policy that provided it did not attach until the underlying insurers under each underlying policy “have paid or have been held liable to pay the full amount of the Underlying Limit of Liability.” The Qualcomm case is certain to impact settlements between insureds and primary insurers where there is a risk of exposure excess of primary limits. The Supreme Court’s decision not to grant review is a further example of the literal approach of the California appellate courts in interpreting plain language in insurance contracts.
