So You Think You Know the Law…(Answers to the Winter Edition 2012 of Gray Matters)
January 2012
5. A contribution action between liability insurers should be brought within two years from the date of the plaintiff insurer’s last payment in the underlying lawsuit. (True or False)
True: The contribution action must be commenced no later than two years after the plaintiff insurer’s last payment in the underlying lawsuit. Century Indem. Co. v. Sup.Ct. (Scottsdale Ins. Co.) (1996) 50 Cal.App.4th 1115, 1124 (finding that the earlier case of Liberty Mut. Ins. Co. v. Colonial Ins. Co. (1970) 8 Cal.App.3d 427, 432, which applied a four year statute of limitations applicable to actions based on written instruments, was “wrongly decided”).
For any questions you may have regarding insurance coverage/bad faith, please contact Wendy Lin Suh in our Encino office.
Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.
