Continental Casualty Co. v. Hartford Accident & Indemnity Co.

We are presented with a question of liability deriving from conflicting “other insurance” clauses in three separately issued policies of automobile liability insurance. Briefly stated, our inquiry is as to whether in the instance at hand the policies provided for primary or excess insurance. We have concluded that the matter before us is governed by our decision in Athey v. Netherlands Ins. Co. (1962) 200 Cal.App.2d 10 [ 19 Cal.Rptr. 89 ], that all three policies provide for excess insurance and that the judgment appealed from should be reversed.

The parties have agreed upon the facts. One James R. Corcoran, Jr. rented an automobile from Paul J. Muldoon, doing business as the Peninsula Lease Company. Corcoran, a resident of Massachusetts, was an executive of Penwal, Inc., a firm located in that state, and was reimbursed by Penwal for the rental charge which included a charge for insurance. While driving the rented automobile in the scope of his employment by Penwal, Corcoran became involved in an accident as a result of which one Victoria Pucci suffered personal injuries and property damage. The latter commenced an action against Corcoran, Peninsula Lease Company and others.

At…