United Enterprises, Inc. v. Superior Court

Otay Land Company and Flat Rock Land Company sued United Enterprises, Inc., United Enterprises, Ltd., and U.E. Limited, L.P. (collectively United), in both federal and state courts for recovery of environmental response costs, damages, and other forms of equitable and statutory relief arising from the operation of a shooting range on property United owned on Otay Mesa between 1956 and 1988 (the underlying actions). Royal Indemnity Company (Royal), United’s insurer for three years beginning in 1966, is defending United under a reservation of rights.

In September 2007, Royal filed its first amended complaint for declaratory relief alleging that it had no duty to defend United under the terms of its policy. Royal moved for summary judgment and summary adjudication. United responded by seeking a stay of further proceedings in the declaratory relief action pursuant to Montrose Chemical Corp. v. Superior Court (1993) 6 Cal.4th 287 [ 24 Cal.Rptr.2d 467 , 861 P.2d 1153 ] (Montrose I). United argued that in responding to the summary judgment motion, it would be forced to marshal evidence that established its liability in the underlying actions. The court denied United’s request…