Fireman's Fund Insurance v. Fibreboard Corp.

In this appeal we consider the meaning and interpretation of a liability exclusion clause contained in each of several insurance policies of an asbestos products manufacturer. We affirm the judgment below for reasons which we will explain.

Background

From 1928 to 1972, appellant Fibreboard Corporation (hereafter Fibreboard) manufactured and sold insulation products containing asbestos. Fibreboard is now enmeshed in litigation involving literally thousands of personal injury claims by workers exposed to asbestos materials and estimates its potential liability upwards of several hundred million dollars.

Respondent and appellant Fireman’s Fund Insurance Company (hereafter Fireman’s Fund) was Fibreboard’s primary comprehensive general liability insurance carrier during the periods 1941-1950 and 1962-1977. Following a dispute Fireman’s Fund cancelled Fibreboard’s policy and, in 1979, instituted the underlying declaratory relief action against Fibreboard and its other insurance carriers. After the sustaining of a demurrer, Fireman’s Fund named Fibreboard’s excess coverage carriers as additional defendants; Fibreboard responded by filing its own cross-complaint for…