Ford Motor Co. v. Home Insurance

Introduction

Plaintiff Ford Motor Company appeals from various judgments dismissing its request for a declaration that plaintiff is entitled to indemnity from defendants insurers (respondents herein) for punitive damages assessed against plaintiff as defendant in actions arising from defects in Ford automobiles or other automotive products. The trial court granted judgments in favor of the various insurers on the basis that insurance coverage of punitive damages is against public policy and is barred as a matter of law under the authority of City Products Corp. v. Globe Indemnity Co. (1979) 88 Cal.App.3d 31 [ 151 Cal.Rptr. 494 ], petition for hearing denied, February 28, 1979.

Facts

Appellant filed a complaint for declaratory relief in June 1978. The complaint sets forth the factual background and basis for the declara tory relief action. Appellant has excess liability policies with each of the respondents. The policies explicitly cover all sums which appellant becomes legally obligated to pay as damages for products liability. None of the policies specifically excludes coverage for punitive or exemplary damages.

The complaint further states that in recent legal…