Stephen Gabarick v. Laurin Maritime (America), Inc
Interlocutory appeal as to whether costs of defense should erode indemnification policy limits, consolidated with a subsequent 54(b) order on the issue by the district court. Held: that the allocation of interpleader funds by the court (the decision whether the liability was decreased or not) is insufficiently final for review. (Insurer had duty to reimburse defense costs, but no duty to defend.)
Policy clearly states that defense costs come from the kitty. Plan provision suggesting otherwise (collision provision) is severable, and therefore independent of the rest, intent-wise.
NB - two separate files posted on the court's site - unsure which controls. Copy 2:
Stephen Gabarick v. Laurin Maritime (America), Inc
Wednesday, August 10, 2011
Fitfth Circuit - Stephen Gabarick v. Laurin Maritime (America), Inc
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Author's SSRN page here.