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Transport Insurance Co. v. Superior Court (R.R. Street & Co., Inc.

California Court of Appeal, Second District, Fifth Division

January 13, 2014

TRANSPORT INSURANCE COMPANY, Petitioner,
v.
SUPERIOR COURT of Los Angeles County, Respondent; R.R. Street & Co., Inc. et al., Real Parties in Interest.

[CERTIFIED FOR PARTIAL PUBLICATION.[*]]

ORIGINAL PROCEEDINGS; petition for writ of mandate. Jane L. Johnson, Judge. Petition granted in part. (Los Angeles County Super. Ct. No. BC425704)

Page 1217

[Copyrighted Material Omitted]

Page 1218

COUNSEL

[166 Cal.Rptr.3d 613] Jane L. Johnson, Judge.Selman Breitman, Ilya A. Kosten, Richard D. Bremer; Robie & Matthai, Edith R. Matthai, David J. Weinman, and Natalie A. Kouyoumdjian, Los Angeles, for Petitioner.

No appearance for Respondent.

Dickstein Shapiro, Kirk A. Pasich, Michael S. Gehrt, Los Angeles, for Real Party in Interest R.R. Street & Co., Inc.

McCurdy & Fuller, Mary P. McCurdy, David C. Hungerford, Menlo Park, for Real Party in Interest National Union Fire Insurance Company of Pittsburgh, Pennsylvania.

OPINION

MOSK, J.

Page 1219

INTRODUCTION

We hold that for purposes of determining whether an additional insured to an excess and umbrella general liability insurance policy is entitled to a defense by the insurer, the reasonable expectations of the additional insured may be different than the reasonable expectations of the named insured. Thus, we vacate the order granting summary adjudication in favor of the insured.

BACKGROUND

A. The 1981 Excess and Umbrella Insurance Policy Transport Issued to Vulcan

Petitioner Transport Insurance Company (Transport) issued to Vulcan Materials Company (Vulcan) [1] a commercial excess and umbrella liability insurance policy (policy [166 Cal.Rptr.3d 614] number XGL-731-81-1), for the period January 1, 1981, to January 1, 1982 (Transport Policy). Endorsement No. 40 to the Transport Policy named R.R. Street & Co., Inc. (Street) as an additional insured with respect to its distribution or sale of Perchloroethylene (PCE), a solvent used in the dry cleaning industry.

The insuring provision of the Transport ...


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