Studley

The plaintiff in a personal injury suit, Christine Studley (hereafter Studley), appeals from an adverse judgment in a suit in intervention brought by the defendants’ insurer.

On June 4, 1987, Studley filed a complaint alleging causes of action for negligence and wrongful death against Benicia Unified School District, Daniel R., and Leonard R. A potential plaintiff, Daryl D., was also named as a defendant pursuant to Code of Civil Procedure section 382 but was never served. On October 2, 1987, Fire Insurance Exchange (hereafter FIE), an interinsurance exchange, filed a complaint in intervention against Studley and each defendant alleging that Daniel R. and Leonard R. had tendered to it the defense of the action under a homeowner’s package policy issued to Daniel R. Acknowledging it had accepted the defense of Daniel R., FIE asked for the declaration that its policy did not provide coverage for Leonard R. and that it was under no obligation to defend him against any potential liability in the case.

A hearing on May 4, 1988, achieved a series of settlements: Benicia Unified School District settled with Studley for the payment of $15,000; FIE agreed to dismiss its complaint…