R. A. Stuchbery & Others Syndicate 1096 v. Redland Insurance

In this insurance coverage dispute, R. A. Stuchbery & Others Syndicate 1096, as Underwriters at Lloyds, London subscribing to Policy No. BA 98 01045LO145 (Stuchbery), insured M & M Luxury Shuttle, Inc. (M & M), a shuttle service operator, and Mostafa Tehrani (Tehrani), an officer and director of M & M, under a general liability policy. Stuchbery defended and ultimately indemnified these insureds in a lawsuit filed by a passenger (the victim) who alleged she had been sexually assaulted by M & M’s driver. Redland Insurance Company (Redland) also insured M & M and Tehrani under a business automobile policy and, following the conclusion of the passenger’s lawsuit (the Underlying Action), Stuchbery filed an action against Redland, seeking reimbursement or equitable contribution for its defense costs and indemnification payment.

Stuchbery appeals a summary judgment entered in favor of Redland after the trial court determined that Redland had no duty to defend or indemnify M & M or Tehrani in the Underlying Action, and therefore Stuchbery was not entitled to reimbursement or equitable contribution from Redland. We conclude that, as a matter of law, the victim’s injuries did not…