Stonewall Insurance v. City of Palos Verdes Estates

I. Appellate Background

This division filed its decision in the within cause on May 15, 1992, and modified it on June 11, 1992, on denial of rehearing. Said decision suggested that in light of the then recent granting of review by the California Supreme Court of Montrose Chemical Corp. v. Admiral Ins. Com. (Cal.App.), grant of review of this case by the Supreme Court would contribute to certainty of California law.

On August 27, 1992, the Supreme Court did grant review of this case.

On July 3, 1995, the Supreme Court filed its decision in the Montrose case: Montrose Chemical Corp. v. Admiral Ins. Com. (1995) 10 Cal.4th 645 [ 42 Cal.Rptr.2d 324 , 897 P.2d 1 ]. The Supreme Court’s decision in the Montrose case is hereinafter referred to as “Montrose.”

This case is again before this court by virtue of an order of the Supreme Court filed October 19, 1995. By that order, the Supreme Court transferred the cause to this court with directions to vacate our prior decision herein and to reconsider the cause in light of Montrose.

II. The Proceedings Below

A. The Underlying Action (the Papworth case)

In an underlying action, Michael T. Papworth (Papworth) sued the City of…