Essex Insurance v. City of Bakersfield

INTRODUCTION

Appellant City of Bakersfield (the City) appeals from a judgment in favor of respondent Essex Insurance Company (Essex) that held that Essex did not owe the City a duty to defend or indemnify it in a related lawsuit, Navarro v. Fulamex-1, Inc. (Super. Ct. Kern County, 2005, No. S-1500-CV-254712) (Navarro). The Navarro lawsuit arose from an automobile accident that allegedly was caused by a dangerous condition resulting from an event organized by the City. Essex had issued an insurance policy covering this event. The Navarro accident did not occur on the premises of the event, and the drivers of the vehicles involved in the accident were not employees or agents of the City or of any insured. The trial court interpreted an insurance contract provision that specifically excluded coverage for “ ‘bodily injury’ or ‘property damage’ arising out of, caused by or contributed to by the ownership, non-ownership, maintenance, use or entrustment to others of any ‘auto’ ” as barring coverage for the Navarro lawsuit. We reverse.

FACTUAL AND PROCEDURAL BACKGROUND

A. The Accident

On October 15, 2004, at approximately 6:44 p.m., an automobile accident occurred on State…