Truck Insurance Exchange v. Amoco Corp.

In a matter involving issues of insurance coverage, plaintiff and appellant Truck Insurance Exchange (Truck) appeals from the summary judgment entered in favor of defendant and respondent Amoco Corporation (Amoco) in a declaratory relief action alleging Amoco to be the “de facto” insurer for Cyprus Amax Minerals Company (Cyprus), a former wholly owned subsidiary, based on the parent corporation’s corporate policy of self-insuring itself and its subsidiaries. Truck argues summary judgment was improper because Amoco’s statements and actions established the former parent corporation as the functional insurer of Cyprus, thereby obligating Amoco to reimburse Truck who, with other liability insurers, paid for the defense and indemnity of Cyprus in talc-related tort litigation.

We determine Amoco was not Cyprus’s insurer and had not agreed to defend and indemnify its former subsidiary. The trial court properly entered summary judgment. Accordingly, we affirm.

Factual and Procedural Background

This is an action for reimbursement of defense costs. The central issue in this appeal is whether, under the facts of this case, a parent company can be transformed into a liability…