Maryland Casualty Co. v. American Home Assurance Co.
This opinion on rehearing addresses an appeal by Maryland Casualty Company (Maryland) against American Home Assurance Company (American) and Illinois National Insurance Company (Illinois), concerning an insurance coverage dispute. Maryland challenges a summary judgment that found National Equipment Services, Inc. (NES), an additional insured under Maryland's policy, was entitled to coverage. The underlying dispute involved the settlement of a lawsuit arising from a trench collapse that killed three workers, with American and Illinois acting as subrogees for NES after settling the claims. Maryland argued that NES, and subsequently its subrogees, failed to comply with critical policy provisions, specifically timely notice of the claim and obtaining consent before settlement, thus prejudicing Maryland's ability to defend. The appellate court, guided by *National Union Fire Insurance Co. v. Crocker*, reversed the trial court's decision, concluding that Maryland was prejudiced as a matter of law due to the wholly lacking notice from NES, which prevented Maryland from exercising its right to defend or consent to the settlement. As a result, the court rendered judgment that American and Illinois take nothing on their claims against Maryland.