Tamrac, Inc. v. CALIFORNIA INS. GUAR. ASSN.

CHARLES S. VOGEL, Presiding Justice.

In La Jolla Beach & Tennis Club, Inc. v. Industrial Indemnity Co. (1994) 9 Cal.4th 27 , 36 Cal.Rptr.2d 100 , 884 P.2d 1048 (hereafter La Jolla ), the California Supreme Court held that because workers' compensation benefits can never be awarded in a civil lawsuit for damages, there is no potential that a judgment in the civil suit can come within the indemnity provisions of a workers' compensation insurance policy, and therefore a workers' compensation insurance carrier has no duty to defend a civil suit against the insured. In the present case the trial court held that appellant California Insurance Guarantee Association (CIGA), pursuant to its statutory obligations for certain claims against an insolvent insurer, is nevertheless liable for costs incurred by respondent Tamrac, Inc. (Tamrac) in defending such a civil lawsuit. The trial court ruled that La Jolla does not apply because La Jolla, which expressly overruled a prior Court of Appeal decision to the contrary, was not decided until after Tamrac's underlying civil action was concluded. We reverse. The La Jolla decision means there never was a potential for coverage and never was a duty…