Abstract

In the last few years, several allocation decisions have been rendered; the number of such decisions will increase apace. Thus far, the number of decisions that have opted for pro‐rata allocation outnumber (sizabfy) the number of decisions that adopted the all‐sums (joint‐and‐several liability) argument. However, resolving the allocation issue in a long‐tail claim coverage dispute is much more complex than merely deciding the pro‐rata versus all‐sums question: A number of issues (legal and factual) must also be decided before a determination of each party's responsibility can be made. These issues include the order of exhaustion (i.e., the horizontalv. vertical exhaustion issue), whether stacking will bepermit‐ted, and how courts view deductibles (or self‐insured retentions). In addition, the number of occurences issue often has an important role in the court's determination of how much each party should pay.

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