City of Greensboro v. Reserve Insurance Co‪.‬

It is plaintiffs' position on this appeal that both the Association, through the Reserve policy, and Midland, are liable on the Bishop claim, and that the Association is liable on the Wilson claim. Both Midland and the Association deny all liability on either claim. (At the time of the May order, the Wilson case had been settled. The Bishop case was still pending; however, the City had already spent over $50,000 in legal fees defending Bishop.) In the May 1983 order the rights and obligations of the various parties were decreed to be as follows: (1) that the Reserve policy provides coverage for Bishop for events occurring before 1 April 1976, and that the Reserve policy covers the costs of defense in Wilson, (2) that the Midland policies provide coverage in Bishop, (3) that, as to Bishop, plaintiffs may proceed against the Association after exhausting their rights under the Midland policies, (4) that the Association is liable as provided by statute for the costs incurred in Wilson, (5) that the Association is subrogated to Reserve's receivers for any amounts it pays, and (6) that plaintiffs may recover prejudgment interest from Midland, but not from the Association.