California Union Insurance v. Landmark Insurance

In February 1982, plaintiff California Union Insurance Company (Cal Union hereafter) filed a declaratory relief action against defendant Landmark Insurance Company (hereafter Landmark). The case involves a controversy between the two companies, the only parties to the litigation, concerning their respective obligations to a property owner claimant (Westmont Gardens) as to which of their policies, as successive carriers, covers a loss.

In the lower court defendant contended the water damage the claimant suffered resulted from two different occurrences, and that plaintiff must provide coverage for damage flowing (no pun intended) from the “occurrence” which happened while its policy was in effect. Plaintiff contended that all the damage to the claimant stemmed from one occurrence and that defendant was liable for the entire loss, as the occurrence first manifested itself during the defendant’s policy period.

The case was tried before a retired judge of the superior court, sitting as a judge pro tern., and was presented upon an agreed statement of facts, the respective policies and the briefs submitted by the parties.

Judgment was entered in favor of defendant Landmark…