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Ludgate Insurance Co. v. Lockheed Martin Corporation6/28/2000
Defendant and cross-complainant Lockheed Martin Corporation (hereafter, Lockheed) appeals from a judgment on the pleadings entered in favor of plaintiff and cross-defendant Ludgate Insurance Company, Ltd. (hereafter, Ludgate), and from an order denying Lockheed's motion to require Ludgate to post a bond pursuant to California Insurance Code sections 1616 and 1620.
We reverse in part, and affirm in part.
PROCEDURAL HISTORY
Ludgate is one of several plaintiffs who filed the present action for declaratory relief against Lockheed. The other plaintiffs are members of underwriting syndicates at Lloyd's, London. Ludgate and the other plaintiffs were designated below for purposes of this action as "Procter and Companies." We will retain that designation in this appeal.
Procter and Companies, as a group of individual London market insurers and syndicates, issued primary and excess liability insurance policies, "each for itself and not for any others," to Lockheed from approximately 1940 through 1985. In December 1995, while this matter was pending below, Ludgate separated itself from Procter and Companies as a plaintiff group, and pursued its claim against Lockheed on its own as a separate and independent plaintiff.
Relevantly restated to pertain to Ludgate alone as a separate and independent plaintiff, the first amended complaint for declaratory relief against Lockheed alleged in pertinent part:
"26. An actual and justiciable controversy exists between [Ludgate] and Lockheed regarding whether a defense obligation is owed by [Ludgate] to Lockheed under either the Primary Policies or the Excess Policies with respect to the Environmental Claims for defense expenses which have been or will be paid or reimbursed by the United States government.
"27. [Ludgate] desire a judicial determination of the rights and duties of the parties under the Primary Policies and the Excess Policies, and a declaration that no defense obligation is owed by [Ludgate] to Lockheed under the Primary Policies or the Excess Policies with respect to the Environmental Claims for defense expenses which have been or will be paid or reimbursed by the United States government.
"28. A judicial declaration is necessary and appropriate at this time so that the parties may ascertain their rights and duties under the Primary Policies and the Excess Policies with respect to whether a defense obligation is owed by [Ludgate] to Lockheed with respect to the Environmental Claims for defense expenses which have been or will be paid or reimbursed by the United States government."
". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
"55. An actual and justiciable controversy exists between [Ludgate] and Lockheed over the rights, duties and obligations of the . . . Primary Policies and the Excess Policies with respect to coverage for defense and indemnity for the Environmental Claims . . . set forth in . . . this First Amended Complaint.
"56. [Ludgate] desire a judicial determination of the rights and duties of the parties with respect to defense and indemnity under the Primary Policies and the Excess Policies, a general declaration that there is no coverage for either defense or indemnity for Lockheed's Environmental Claims under the terms, conditions, exclusions and provisions of the Primary Policies and the Excess Policies . . . .
"57. A judicial declaration is necessary and appropriate at this time so that the parties may ascertain their rights and duties under the Primary Policies and the Excess Policies with respect to defense and indemnity of the Environmental Claims . . . ."
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