Nationwide Mut. Fire Insurance Co. v. Erie Insurance Exchange
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In this equitable contribution action brought by Nationwide Mutual Fire Insurance Company and Nationwide Mutual Insurance Company (collectively, Nationwide) against Erie Insurance Exchange the Supreme Court vacated the final judgment of the circuit court granting Erie's demurrer and dismissing Nationwide's claim for equitable contribution, holding that the circuit court erred as a matter of law.
In Nationwide Mutual Fire Insurance v. Erie Insurance Exchange, 293 Va. 331 (Nationwide I), the Supreme Court resolved an insurance coverage dispute between Nationwide and Erie. Thereafter, Nationwide brought this action seeking reimbursement for Erie's share of a monetary settlement that Nationwide had paid to a tort claimant while the case was on appeal. The circuit court sustained Erie's demurrer to the claim. The Supreme Court reversed, holding that the circuit court should have denied Erie's demurrer to the claim of equitable contribution based upon the coverage allocation that the Court had determined in Nationwide I. The Court remanded the case to the circuit court to enter an order awarding contribution to Nationwide consistent with the Court's allocation of coverage liability in Nationwide I and with the views expressed in this opinion.
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