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Syntex Corp. v. Lowsley-Williams and Companies11/10/1998
ting in damages during the policy term, the scope of the insurers' obligation is to pay for all damages resulting from that occurrence, even those occurring beyond the policy period." London Insurers contend that this interpretation is incorrect, and that London Insurers was obligated only with respect to damage which occurs during the policy period.
After the initial briefs in this case were filed, but before we issued our initial decision in this matter and before the petition for rehearing was filed, our Supreme Court decided this issue. Aerojet-General Corp. v. Transport Indemnity Co. (1997) 17 Cal.4th 38, 56-57, held that the "all sums" clause in standard CGL policies obligate an insurer to indemnify an insured for "all specified harm caused by an included occurrence, even if some such harm results beyond the policy period. [Citation.] In other words, if specified harm is caused by an included occurrence and results, at least in part, within the policy period, it perdures to all points of time at which some such harm results thereafter." (See id. at p. 57, fn. 10; Armstrong World Industries, Inc. v. Aetna Casualty & Surety Co. (1966) 45 Cal.App.4th 1, 50, 105.) Because the court's decision in Aerojet-General is binding on us, we reject London Insurers' argument and affirm the trial court on this issue. (Auto Equity Sales, Inc. v. Superior Court (1962) 57 Cal.2d 450, 455.)
Disposition
The order and judgment of the trial court denying London Insurers' motion for JNOV as to the pollution exclusion clauses in the 1973-1984 policies is reversed. The trial court is directed to enter a new judgment finding that London Insurers has no duty to indemnify Syntex under the 1973-1984 policies for damage caused by Bliss's release of dioxin-tainted oil. The judgment of the trial court determining that London Insurers must indemnify Syntex under the 1970-1973 policy is reversed, and the matter remanded to the trial court for further proceedings consistent with this decision, including retrial of those factual issues necessary for a declaration of London Insurers' indemnity obligations under the 1970-1973 policies as to the government clean-up claims.
London Insurers to recover costs on appeal.
We concur: Corrigan, Acting P. J. Parrilli, J.
Trial Court: San Francisco County Superior Court
Trial Judge: Daniel M. Hanlon
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