Masonite Co. v. Great American Surplus Lines Insurance

Introduction

Great American Surplus Lines Insurance Company (GASLIC) issued an environmental impairment liability insurance policy to Masonite Corporation (Masonite). The California Regional Water Quality Control Board (RWQCB) subsequently discovered that there was soil and water contamination at the site of one of Masonite’s operations and issued a cleanup and abatement order. GASLIC denied coverage and Masonite brought an action against GASLIC, and others. The complaint, among other things, sought a declaration that the GASLIC policy covered Masonite’s claim. This portion of the complaint was severed from the remainder of the action. The matter was submitted to a jury, which found no coverage.

Masonite contends on appeal that the jury was misled to Masonite’s detriment by certain jury instructions and by a verdict form. There is no argument that the evidence does not support the verdict; rather, the argument is that the jury probably would have reached a different verdict had it been instructed properly. Accordingly, it is irrelevant that there was substantial evidence supporting the jury’s verdict on the instructions actually given. “ ‘ “[I]n determining whether a…