01:25 PM EDT, 09/06/2024 (MT Newswires) -- Travelers (TRV) unit St. Paul Mercury Insurance, and Liberty Mutual Insurance are not liable to cover legal costs of dispute between the co-founders of Fox Paine, a California appellate court ruled.

The court found that the plaintiffs failed to prove the underlying insurance limits were exhausted before the insurers' excess coverage policies could be triggered, a requirement for their obligations to attach.

California Court of Appeals 1st Appellate District ruled Thursday that a policy issued by St. Paul Mercury Insurance "is triggered only if the 'total amount of' underlying limits has been paid". The court also noted that "Liberty Mutual's policy 'only provides coverage' when the underlying limit of liability 'is exhausted' by the underlying insurers paying or being held liable to pay."

St. Paul provided the second $10 million layer of coverage, while Liberty Mutual covered the fourth layer at $40 million, according to the ruling.

Travelers and Liberty Mutual Insurance did not immediately respond to MT Newswires' requests for comment.

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