Opinion ID: 2100698
Heading Depth: 1
Heading Rank: 6

Heading: Volunteer

Text: [¶ 15.] Farm & City argues that NFU should be precluded from seeking contribution because NFU's payment of the full amount of the claim was voluntary. Farm & City cites American Reliable Ins. Co. v. St. Paul Fire & Marine Ins. Co., 79 S.D. 226, 110 N.W.2d 344, (1961), in support of this argument. The following is the explanation of the volunteer principle taken from that case: It appears well settled that there is no right of contribution among insurers whose policies as in the instant case contain pro rata clauses limiting liability. ... [I]f each of several insurers contracts to pay such proportion of the loss to result from the destruction of the insured premises as the amount insured by such insurer bears to the whole insurance effected on the property, none of them has any right to contribution from the others, nor will the payment of the whole loss by any of them discharge the liability of the others, for in such a case the contracts are independent of each other ... [.] .... ... [I]n case of concurrent insurance an insurer paying more than its share of the loss for which all insurers are liable, may compel contribution. The reason for a different rule in case of pro rata or coinsurance is thus stated: But in the different policies concerned in this case there is no concurrent liability. Each insurer, by the distinct terms of his contract, makes himself liable for a certain and definite fractional part of the loss, to be calculated in the manner stipulated in the policies. Id. at 230-231, 110 N.W.2d 344 (internal citations omitted). In the instant case, there is no pro rata provision in the NFU umbrella policy, thus the volunteer argument offered by Farm & City is inapplicable. In addition, the volunteer principle described above applies in cases of contribution. As explained below, the equitable reimbursement being sought here is actually subrogation, rather than contribution.