Lockheed Martin Corp. v. Continental Insurance

In this insurance coverage matter, Lockheed Martin Corporation (Lockheed) seeks coverage under numerous policies for pollution-related liability totaling hundreds of millions of dollars. (See Travelers Casualty & Surety Co. v. Superior Court (1998) 63 Cal.App.4th 1440 , 1444—1445 [ 75 Cal.Rptr.2d 54 ] {Travelers).) After 10 years of litigation, the trial court entered judgment for the insurers and Lockheed has appealed.

Lockheed raises five issues on appeal. The first three issues involve interpretation of certain comprehensive general liability (CGL) policies issued by Harbor Insurance Company for the period from January 1, 1969 through March 1, 1978 (the Harbor policies). The Harbor policies are not standard form policies but are “manuscript” policies drafted especially for Lockheed. We hold that within the meaning of the particular policies at issue: (1) The duty to defend “any suit or action” does not obligate the insurer to defend administrative actions that have not ripened into lawsuits; (2) provisions that define “personal injury” as “wrongful entry” or “violation or infringement of property or contract rights” do not cover liability for pollution-related…