Oxnard Union High School District v. Teachers Insurance

The sole question on this appeal by Teachers, Insurance Company is who, is liable for the payment of $115,000 to Robert L. Chambers and for the payment of attorneys’ fees and court costs in stipulated amounts incurred in the defense of his suits against Oxnard Union High School District and Ova L. Farrow. The trial court adjudged that Teachers, Farrow’s insurer, was liable for $100,000, its policy limits, and United Pacific Insurance Company, District’s insurer, was liable for $15,000 in excess coverage and that the liability for the attorneys’ fees and court costs should be divided between the two insurers proportionately to the principal liabilities just stated. The rationale for this determination was that Teachers’ insurance policy covering Farrow and the. District as an additional insured afforded primary coverage and United’s insurance policy covering the District afforded only coverage excess to that provided by Teachers ($100,000).

Teachers does not challenge this result on the ground that the court misconstrued the two insurance policies. Teachers’ position is that this result is contrary to the Governmental Tort Liability Act of 1963, division 3.6 of the…