Applying Pro Rata Allocation To Defense Costs

Law360, New York (August 05, 2011, 3:18 PM ET) -- In its landmark decision in Boston Gas Co. v. Century Indemnity Company, 454 Mass. 337 (2009), the Supreme Judicial Court of Massachusetts (SJC) rejected joint and several allocation of environmental indemnity losses in favor of a pro rata approach.

However, the Boston Gas court did not specifically address the question of how defense costs should be allocated, and policyholders and insurers have continued to wrestle with that issue absent further direction from the SJC. As explained below, the analysis underlying the SJC’s decision in Boston Gas...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers