Insurance Co. of the West v. Haralambos Beverage Co.

Defendants Haralambos Beverage Company, Tony Haralambos, and H.T. Haralambos (collectively HBC), appeal from an adverse judgment on plaintiff Insurance Company of the West’s (ICW) complaint for declaratory relief and equitable indemnification. Because a triable issue of material fact exists concerning ICW’s right to equitable indemnification, summary judgment was improperly granted. Reversed and remanded.

Facts & Proceedings Below

HBC, a beverage distributor, contracted with W.F. Mickey Body Company, Inc. (Mickey Body), a manufacturer of beverage route trailers, for the manufacture and sale of two trailers. Although HBC had agreed to pay Mickey Body for the trailers, HBC failed to do so after receiving delivery. Mickey Body filed suit against HBC and others in United States District Court, Central District of California, on January 13, 1983 (No CV 83 0819 WMB (Bx)), for breach of contract, fraud, and wrongful possession.

HBC, through its private counsel, Brown, Reed & Gibson, tendered the defense of the Mickey Body suit to ICW, under HBC’s commercial multiperil policy. On May 4, 1983, ICW’s agent, Sharon Killion, orally agreed to provide a defense subject to a…