Follow-the-Fortunes Doctrine Extended to Settlement Allocations

In a recent ruling, the Second Circuit Court of Appeals held that the follow-the-fortunes doctrine, long applied to the settlement decisions of underlying insurers, applies also to the post-settlement allocations of underlying insurers. Travelers Cas. & Sur. Co. v. Gerling Global Reins. Corp. of Am., Case No. 03-9220-CV (2nd Cir., August 18, 2005).