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Schneider National Transport v. Ford Motor Co.

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Appeal from the United States District Court for the Eastern District of Texas

This diversity case involves a dispute between primary and excess coverage insurance carriers as to the obligation to pay the cost of defending a lawsuit of the insured. The case was submitted to the district court on cross-motions for summary judgment. Appellee’s motion for summary judgment was granted and appellant’s denied. In so ruling, the district court determined that appellant, the excess insurance carrier, was required to contribute to the cost of the primary carrier of defending the lawsuit of the insured. This court reverses that decision, finding that the excess carrier was not required to contribute to the cost of defending its insured’s lawsuit until the primary carriers had exhausted their underlying policy limits.

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