Alpha Therapeutic Corp. v. Home Ins. Co.

Certified for Partial Publication. [*]

Alpha Therapeutic Corporation appeals the grant of summary judgment against it on claims to establish coverage for defense and indemnity obligations under successive excess general liability policies issued over a seven-year period. Coverage was denied and summary judgment granted based on the trial court's application of the "anti-stacking" principle, as enunciated in FMC Corp. v. Plaisted & Companies (1998) 61 Cal.App.4th 1132 , 72 Cal.Rptr.2d 467 ( FMC ), limiting recovery to a single year's total policy limits, as well as application of the concept of "qualified time on the risk," which resulted in the single year's total limit being allocated over the seven years of coverage.

We conclude the "anti-stacking" rule was misapplied and the undisputed facts were insufficient to establish that the excess carriers could have no obligation to indemnify Alpha. The judgments will be reversed, and the matter remanded for further proceedings consistent with this opinion.

Alpha Therapeutic Corporation was in the business of processing and distributing blood factor concentrates, a substance separated from human plasma which provides…