Northbrook Excess & Surplus Insurance v. Coastal Rescue Systems Corp.

Northbrook Excess and Surplus Insurance Company (Northbrook) filed an action for declaratory relief against Coastal Rescue Systems Corporation (Coastal), Larry Gibson (Gibson), Rob MacLeod (MacLeod) and Dennis Caywood (Caywood). Northbrook sought a judicial declaration that the insurance policy, issued by Northbrook to Coastal, Gibson and MacLeod, provides no coverage for injuries suffered by Caywood or any other person as a result of an accident which occurred on February 3, 1983, and further that it had no duty to defend Coastal, Gibson and MacLeod against Caywood’s action for personal injuries or any related action. With a reservation of rights, Northbrook defended Coastal, Gibson and MacLeod in the superior court action filed by Caywood.

At the trial on the declaratory relief action brought by Northbrook, evidence consisted of the insurance policy and the deposition testimony of Gibson and MacLeod. In its order, the trial court found that an exclusion clause contained in the policy applies and that the policy did not provide insurance coverage to Coastal, Gibson and MacLeod for the defense of Caywood’s action. Pursuant to its findings, the trial court granted a…