Otay Land Co. v. Royal Indemnity Co.

This appeal from a judgment of dismissal in favor of defendant and respondent Royal Indemnity Company (Royal), following an order sustaining its demurrer without leave to amend, was brought by plaintiffs and appellants Flat Rock Land Company and its predecessor, Otay Land Company (collectively Flat Rock or plaintiff). The complaint filed by Flat Rock sought declaratory relief regarding Royal’s anticipated insurance coverage of one of Royal’s former insureds, nonparty United Enterprises et al. (United), with respect to contamination problems at the property now owned by Flat Rock and formerly owned by United. (Code Civ. Proc., § 1060.) Flat Rock contends the trial court erroneously failed to recognize that declaratory relief could be properly ordered regarding any insurance coverage for the former insured, United, such that Flat Rock could then take advantage of that declared coverage in related environmental litigation against United.

This appeal follows Flat Rock’s unsuccessful appeal of an order denying it the right to intervene in an earlier similar declaratory relief action that Royal brought against its insured, United (which is still pending). (Code Civ. Proc., §…