Sdr Co., Inc. v. Federal Insurance

Good Law
196 Cal. App. 3d 1433·1987 Cal. App. LEXIS 2433·242 Cal. Rptr. 534
Court of Appeal of CaliforniaDecember 15, 1987B028446California1,783 words

Opinion

Opinion

McCLOSKY, J.

—This is an appeal by plaintiff SDR Co., Inc. (SDR) from a judgment in favor of Federal Insurance Company (Federal) and Arroyo Sales (Arroyo) and against SDR.

The sole issue on appeal is the interpretation of an insurance contract clause contained in a “vendor’s endorsement” and its effect. The action was tried to the court without a jury on a joint stipulation of facts.

Contentions

Plaintiff contends that (1) the vendor’s endorsement is ambiguous or illusory and must be construed against Federal, and (2) the vendor’s endorsement should be interpreted to provide SDR with coverage for the Brtek claim.

Facts

SDR sold a bottled liquid drain cleaner which was bottled sulfuric acid. SDR bought the empty plastic bottles from Arroyo preprinted at SDR’s request and instruction, with the Clear-All name and warning on them. SDR filled those bottles with sulfuric acid and sold them to the public as Clear-All.

The label Arroyo had printed on the SDR bottles contained a warning that Clear-All consisted of sulfuric acid; that it was dangerous and hable to erupt if not properly used; and that it could cause physical injury and bums if not properly used.

At SDR’s request Arroyo…

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