Transamerica Ins. Co. v. Superior Court of L.A. Cty.

Petitioners, Fairmont Insurance Company (Fairmont) and Transamerica Insurance Company (Transamerica) (collectively referred to as petitioners), seek to have us reverse an order granting summary adjudication of a cause of action for declaratory relief relating to their duty to defend. In connection with their request, we issued an alternative writ. After considering the matter, including real parties’ opposition to the petition, we now grant a writ of mandate commanding the trial court to vacate its order granting summary adjudication.

Statement of Facts

On January 15, 1989, Fairmont issued a workers’ compensation and employers’ liability insurance policy (the Policy) to Western Industrial Management Corporation (Western) effective January 15, 1989, to January 15, 1990.

The Fairmont policy provides two separate grants of coverage: (1) for “such benefits as are required by the Workers’ Compensation Laws of the State of California to any person entitled thereto” (workers’ compensation coverage) and (2) “employer’s liability” which pays “all sums, except for punitive or exemplary damages, which the Employer shall become legally obligated to pay to its employee . . . for .…