 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Aydin Corp. v. First State Insurance Co.8/20/1998
As modified October 14, 1998.
AYDIN CORPORATION, PLAINTIFF AND RESPONDENT,
v.
FIRST STATE INSURANCE COMPANY, DEFENDANT AND APPELLANT.
Ct. App. 1/4 A068910
Attorneys for Appellant: Crosby, Heafey, Roach & May, James C. Martin, Joseph P. Mascovich, Boyd C. Sleeth, Melito & Adolfsen, Siff Rosen and Louis G. Adolfsen for Defendant and Appellant. Wiley, Rein & Fielding, Laura A. Foggan, Daniel E. Troy, Craig S. Lerner, Bien & Summers, Elliot L. Bien, Hancock, Rothert & Bunshoft and William J. Baron as Amici Curiae on behalf of Defendant and Appellant. Attorneys for Respondent: Brobeck, Phleger & Harrison, Donald W. Brown, David E. Weiss and Edith M. Hofmeister for Plaintiff and Respondent. Troop, Meisinger, Steuber & Pasich, Martin D. Katz, Lauri S. Konishi, Latham & Watkins, David L. Mulliken, Dorn G. Bishop, Julia E. Parry, Heller, Ehrman, White & McAuliffe and David B. Goodwin as Amici Curiae on behalf of Plaintiff and Respondent.
The opinion of the court was delivered by: Brown, J.
San Francisco County Super. Ct. No. 857826
In this case, we must decide whether, in an action seeking indemnity under a standard commercial general liability insurance policy (formerly called a comprehensive general liability insurance policy), the insured or the insurer bears the burden of proving that a claim comes within the "sudden and accidental" exception to the general pollution exclusion. The Court of Appeal concluded that once the insurer carries its burden of proving that the exclusion applies, the insured bears the burden of proving the exception. We agree with the Court of Appeal's Conclusion and, therefore, affirm its judgment.
I. Factual and Procedural Background
A. The Contamination and the Remedial Action Order
The underlying facts are well summarized in the Court of Appeal's opinion. From 1969 until May 1984, plaintiff Aydin Corporation (Aydin) operated a research and manufacturing complex in Palo Alto at which it fabricated, assembled, and repaired electrical transformers. These operations required the use of a variety of noxious chemicals, oils, solvents, and waste materials. Some of these fluids were stored in metal tanks buried underground; other liquids were kept aboveground in 55-gallon metal drums. The drums and material pumped out of the tanks were turned over to a disposal company.
In 1980, Aydin discovered polychlorinated biphenyl (PCB) ground soil contamination and attempted to correct it. In July 1981, Aydin discovered the PCB contamination had recurred, and on a much larger scale. PCB contamination was found in the area of the underground tanks. There was also solvent contamination of the groundwater beneath the site. The tanks, removed in 1986, contained numerous holes. Aydin notified the California Department of Health Services, which promulgated a remedial action order requiring Aydin to undertake an extensive program of studies, monitoring, and cleanup efforts.
A. The Comprehensive General Liability Insurance Policies
From the beginning of 1980 to the end of 1981 (i.e., during the period when the second PCB contamination was discovered), Aydin had $5 million of excess coverage issued by defendant First State Insurance Company (First State). In each of the two annual comprehensive general liability insurance policies at issue, First State agreed to indemnify Aydin for "all sums which the INSURED shall be obligated to pay by reason of the liability imposed upon the INSURED by law or liabilit
Page 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 California Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
By using the system, you agree to TERMS OF SERVICE
|