Pacific Indemnity Co. v. Bellefonte Insurance
Opinion
Opinion
Benke, J.
In this action between successive third party liability carriers, Bellefonte Insurance Company (Bellefonte) appeals a summary judgment in favor of Pacific Indemnity Company (Pacific), determining Bellefonte had a duty to defend its insured in underlying litigation. We are unpersuaded by Bellefonte’s contention the “owned property” exclusion of its policies barred coverage. We agree, however, that equitable contribution principles require proration of defense costs notwithstanding the “excess-only” “other-insurance” provision of Pacific’s policies. Accordingly, we reverse the judgment insofar as it awards Pacific the total amount of defense costs and remand the matter for further proceedings.
Background
In June 1996 Environmental Advocates and Save Our Bay, Inc. (together Environmental Advocates) sued San Diego Unified Port District (Port District) for declaratory relief, injunction and civil penalties. Environmental Advocates alleged Port District held the Bay of San Diego (Bay) in public trust and breached its duties as trustee to protect the Bay and its marine animals and vegetation from contamination occurring at unspecified times.