United States Fidelity & Guaranty Co. v. American Re-Insurance
This dissenting opinion addresses the affirmation of a judgment that granted plaintiffs' motion for summary judgment. The dissent argues that a genuine triable issue of fact exists regarding whether a portion of a substantial settlement between United States Fidelity & Guaranty Company (USF&G) and Western MacArthur was attributable to bad faith claims, which are purportedly not covered by the defendants' reinsurance treaty. The dissenting judge contends that the treaty's plain language excludes such extra-contractual liabilities and that the majority incorrectly applied the 'follow the fortunes' clause. Furthermore, the dissent cites findings from bankruptcy court and evidence from the underlying Western MacArthur v USF&G coverage litigation, both suggesting that bad faith damages were indeed part of the settlement. Therefore, the dissenting justice advocates for denying the plaintiffs' motion for summary judgment and vacating the judgment.