General Motors Acceptance Corporation, Respondents v. Nationwide Insurance Company, Appellant

Summary

The New York Court of Appeals held that when two coincidental primary auto liability policies with identical limits exist and the excess carrier voluntarily assumes the defense, defense costs must be allocated based on the primary policy limits, resulting in an equal 50‑50 split. The Court reversed the Appellate Division and remanded for further proceedings; Justice R.S. Smith concurred in the result but argued the allocation could be greater than 50% to Fireman's and questioned the majority's reliance on the notion of coincidental primary policies.