Government Employees Insurance v. Gibraltar Casualty Co.

The plaintiff, Government Employees Insurance Company, a corporation (GEICO), appeals from the superior court’s grant of *165 summary judgment in favor of defendants Rialto Unified School District (District) and Gibraltar Casualty Company, a corporation (Gibraltar), and the court’s denial of plaintiff GEICO’s motion for summary judgment or in the alternative for summary adjudication of issues determined to be without substantial controversy. We affirm.

Contentions

GEICO contends that: “I. Since [District] was not an insured under the GEICO policy; and since the policy of the law requires that the public entity (not the public employee) ultimately shoulder the burden of a loss; the burden of Gauthier’s claim should be borne entirely by [District] and/or Gibraltar; .... II. Since [District] was self-insured for the first $50,000 layer; and since [District] did not produce any evidence to show that it had filed a certificate of self-insurance with the Department of Motor Vehicles; the trial court improperly granted [Districtj/Gibraltar’s motion for summary judgment; .... III. Since [District]’s duty to defend and indemnify McClellan did not sound in tort, but is more…

Like the majority, I agree with respondents that Insurance Code section 11580.1, subdivision (b)(4), requires GEICO to include language in its policies that in this case makes the Rialto Unified School District (School District) an uninsured beneficiary of its teachers’ private insurance. I also agree that Insurance Code section 11580.9 contains provisions that make the teacher’s private insurance policy the primary policy in this case while that of the School District is merely excess. Unlike the majority, however, I am not so easily convinced that these sections are not in conflict with Government Code section 825 et seq., and that therefore the public entity may fulfill its obligations to defend and indemnify its employees by relying on the employees’ personal assets. It is farcical to insist that the School District is complying with its duty to indemnify its employees when the proceeds that allegedly do so come from an insurance policy bought and paid for by the employee and when it is the employee who, following a $100,000 claim, will certainly have to pay exorbitantly for such coverage in the future and may be totally uninsurable. To call it “indemnification” *177 when the…

McCLOSKY, J.

The plaintiff, Government Employees Insurance Company, a corporation (GEICO), appeals from the superior court's grant of summary judgment in favor of defendants Rialto Unified School District (District) and Gibraltar Casualty Company, a corporation (Gibraltar), and the court's denial of plaintiff GEICO's motion for summary judgment or in the alternative for summary adjudication of issues determined to be without substantial controversy. We affirm.

GEICO contends that: "I. Since [District] was not an insured under the GEICO policy; and since the policy of the law requires that the public entity (not the public employee) ultimately shoulder the burden of a loss; the burden of Gauthier's claim should be borne entirely by [District] and/or Gibraltar; .... II. Since [District] was self-insured for the first $50,000 layer; and since [District] did not produce any evidence to show that it had filed a certificate of self-insurance with the Department of Motor Vehicles; the trial court improperly granted [District]/Gibraltar's motion for summary judgment; .... III. Since [District]'s duty to defend and indemnify McClellan did not sound in tort, but is more properly…