Excess insurer Ace American Insurance Co. is suing a primary carrier over the Green Lantern movie, in a suit surprisingly unrelated to the film’s unremitting awfulness.
A California appellate court has rules that Ace American can continue its claim against Fireman’s Fund Insurance, according to Law360. Ace American is trying to recover payments it made to settle a Green Lantern crew member’s multimillion-dollar injury lawsuit against Warner Bros., the studio which produced the movie, Law360 reported.
The court reversed a lower court’s decision and ruled that Ace can pursue an equitable subrogation action against Fireman’s Fund because the latter company failed to settle a suit filed by special effects supervisor John Franco within the primary policy’s limits, according to Law360. Franco was injured during the 2010 filming of Green Lantern. During a vehicle stunt, a van’s rear axle dislodged, flew more than 150 feet and struck him, according to Law360. The accident left Franco with a crushed pelvis, broken hip and leg fractures. He also alleged nerve damage and other conditions that would require lifelong medical care.
Franco had originally demanded a settlement within the limits of Fireman’s Fund’s policies – but the insurer refused, according to Law360. Five months later, Warner Bros. agreed to settle with Franco for an amount “substantially in excess” of what was covered under Fireman’s Fund’s policy limits. A trial court held that Ace couldn’t sue Fireman’s Fund to try to recover its contribution toward the payout because Franco’s suit ended in a settlement rather than an excess judgment against Warner Bros., Law360 reported.
But the appellate court ruled that an excess judgment isn’t a requirement for an equitable subrogation claim.
“Ace American ... has alleged that it was damaged in an ascertainable amount as a direct result of Fireman’s Fund’s failure to accept the Francos’ reasonable, within-limits settlement offers,” Judge Audrey B. Collins wrote on behalf of the three-judge appellate panel. “We see no persuasive reason to hold that either Warner Brothers or its assignee, Ace American, must suffer that loss with no remedy simply because the case reached an eventual settlement instead of being litigated through trial.”
