Haskel, Inc. v. Superior Court

In this case, we deal with one of the important implications of the Supreme Court’s most recent decision on a liability insurer’s duty of defense.

In Montrose Chemical Corp. v. Superior Court (1993) 6 Cal.4th 287 [ 24 Cal.Rptr.2d 467 , 861 P.2d 1153 ] (Montrose I), the court recognized that a liability insurer’s duty to defend arises upon tender of the defense and that an immediate imposition of that burden is necessary to provide to an insured the full benefits due under the policy. This case raises the question of just how that rule impacts upon the right of an insurer, who has denied any defense obligation, to conduct discovery on disputed questions of coverage prior to a ruling on an insured’s motion for summary adjudication of the defense issue. A corollary problem is whether, and under what circumstances, an insured can obtain a stay of such discovery pending resolution of the underlying third party action.

In this declaratory relief action, petitioners, Haskel Inc., Haskel Engineering & Supply Company and Haskel International, Inc., all California corporations (collectively Haskel), seek a writ of mandate directing the trial court; (1) to vacate an order placing…