Acuity v. Kinsale underscores that Colorado courts will distinguish carefully between contractual, equitable, and statutory theories in multi-insurer disputes.
In Acuity v. Kinsale Insurance Company, 750 F. Supp. 3d 1229 (D. Colo. 2024), the United States District Court for the District of Colorado addressed the duties and rights of multiple insurers that issued commercial general liability (“CGL”) policies to the same insured. The decision clarifies how subrogation and contribution apply when one carrier funds a settlement and another refuses to participate.
Background
Phipps Construction Company served as the general contractor for the construction of a retirement community in Lakewood, Colorado. Phipps subcontracted the stucco work to Monarch Stucco, Inc. When the project owner, BMSH I Lakewood CO LLC, alleged construction defects, it brought an arbitration action against Phipps. Phipps in turn filed a third-party claim against Monarch, alleging defective and cracking stucco on fifteen buildings.