Certain Underwriters at Lloyd's of London v. Superior Court of Los Angeles County

Summary

The California Supreme Court held that, under a standard comprehensive general liability insurance policy, the insurer's duty to indemnify for sums the insured becomes legally obligated to pay as damages is limited to money ordered by a court. The duty does not extend to expenses required by an administrative agency under environmental statutes, including CERCLA or the Porter-Cologne Water Quality Control Act. The court affirmed the Court of Appeal's issuance of a writ directing summary adjudication for the insurers.

Holdings

1. The insurer's duty to indemnify for all sums that the insured becomes legally obligated to pay as damages is limited to money ordered by a court.
2. The duty to indemnify does not extend to expenses required by an administrative agency pursuant to an environmental statute.
3. Policy No. LAB 2579 limited the London Insurers' duty to indemnify Powerine to money ordered by a court and did not cover expenses required by the Regional Water Boards under the Porter-Cologne Act.
4. An order granting or denying summary adjudication is subject to independent review.

Questions Presented

1. Whether the duty to indemnify under a standard comprehensive general liability insurance policy for sums the insured becomes legally obligated to pay as damages is limited to money ordered by a court.
2. Whether that duty to indemnify extends to expenses required by an administrative agency pursuant to an environmental statute.
3. Whether policy No. LAB 2579 imposed a duty to indemnify Powerine for expenses required by the Regional Water Boards under the Porter-Cologne Water Quality Control Act.
4. Whether the Court of Appeal properly subjected the summary-adjudication ruling to independent review.

Disposition

affirmed