Maryland Cas Co v. Nationwide Mut Ins Co

In Maryland Cas. Co. v. Nationwide Mut. Ins. Co. (2000) 81 Cal.App.4th 1082, the general contractor was named as an additional insured on the policies of two subcontractors on a project. The general contractor and many subcontractors were sued for construction defects. The issue in Maryland was whether the general contractor's insurer was entitled to equitable subrogation from the insurer of the two subcontractors for the entire remaining balance of the general contractor's defense costs. The Court held equitable contribution was the appropriate remedy because the policies at issue could not reasonably be interpreted to require the insurer of the two subcontractors to pay defense costs attributable to the negligence of the general contractor or others. (Id. at p. 1091.)