DISCLAIMER: Any unofficial case summaries below are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
091569P.pdf 09/02/2010 Travelers Property Casualty v. National Union Insurance
U.S. Court of Appeals Case No: 09-1569
U.S. District Court for the Western District of Missouri - Kansas City
[PUBLISHED] [Melloy, Author, with Beam and Gruender, Circuit Judges]
Civil case - insurance. Travelers waived certain of its rights by
repeatedly refusing to participate in subrogation discussions and
agreements concerning allocation of loss and third party litigation;
Travelers also waived any right to challenge the allocation agreement's
underlying characterization of recoveries as insured or uninsured losses;
Travelers did not waive its right to assert an interest in any sums Kansas
City Power and Light and National might recover from Rockwell
Automation on claims its negligence was a cause of the underlying
damage to KCPL's facility; under Missouri law and the provisions of the
policies, Travelers, as the excess coverage carrier, could not assert a
subrogation claim against funds KCPL received from third-party
tortfeasors for uninsured losses; the Travelers policy unambiguously
grants sole priority in insured proceeds to Travelers and National Union
is bound by the policy as a subrogee of KCPL who holds only the rights
of, and is subject to the contractual restrictions upon, KCPL; such a
conclusion is also consistent with the provisions of the National Union
policy; as a result, National must disgorge $10 million from its share of
the judgment against Rockwell, the third-party tortfeasor.