No Equitable Contribution From Employer’s Insurance Policies Until All Of The Tortfeasor Employee’s Policies Exhausted.

An employee caused injuries to another person while driving his car in connection with his employer’s business.  Three insurance policies were in effect.  Insurer #1 insured the negligent employee.  Insurers # 2 and #3 insured the employer. After a settlement, Insurer #1 sought equitable contribution from #2 and #3, which the trial court ordered after granting a summary judgment. The appellate court reversed, stating “an employer is only vicariously liable for the actions of the tortfeasor employee, and therefore all of the insurance policies covering the tortfeasor employee, primary and excess, must be exhausted before the umbrella policy of an insurer that covered only the employer must make a contribution.” Guideone Mutual Insurance Company v. Utica National Insurance Group  (Cal. App. Fourth Dist., Div. 1; February 28, 2013) (Case No. D059833).