County of San Bernardino v. Pacific Indemnity Co.

Defendant Pacific Indemnity Company (Pacific) appeals the portion of a court judgment entered upon the parties’ stipulation that Pacific was contractually obligated to defend plaintiff County of San Bernardino (County) in two underlying lawsuits brought against the County. We affirm that portion of the judgment.

The County appeals the portions of the judgment entered upon the parties’ stipulation that Pacific was responsible only for 50 percent of the defense costs in those lawsuits and that the hourly attorney fee rate Pacific was required to pay in defending one of those suits was statutorily limited under Civil Code section 2860, subdivision (c). We reverse those portions of the judgment and direct the superior court to enter a new judgment favoring the County on such issues.

I

Introduction

Pacific provided the County with primary comprehensive general liability (CGL) insurance for more than 25 years. When Pacific’s policies terminated, the County did not obtain replacement coverage.

Beginning while Pacific’s policies were in effect and continuing after their expiration, the County operated a landfill. More than a decade after Pacific’s policies expired, owners of…