Merrill & Seeley, Inc. v. Admiral Insurance

Merrill & Seeley, Inc., a professional engineering

corporation, and Michael J. Merrill, Marc W. Seeley and James R. Mullen, three professional members thereof (collectively appellants), were insureds under three professional liability policies issued by Admiral Insurance Company (Admiral) effective from July 18, 1983, through June 1, 1986. Appellants sued Admiral and others for declaratory relief, breach of contract and various tort causes of action after Admiral denied them coverage under the policies. Ultimately, the trial court dismissed the action after sustaining Admiral’s demurrers to the first and second amended complaints without leave to amend; this appeal followed.

Appellants urge us to reverse on grounds that the coverage restrictions are against public policy because they do not comport with the reasonable expectations of the insured. They further argue the policy language and format is misleading and ambiguous. We conclude the pertinent policy language is not ambiguous and, hence, under California law there is no reason to look to the insured’s reasonable expectations. Finally, the policy format adequately directs the insured to the key limiting provisions…