Vann

Gordon Vann, individually and doing business as Vann’s Auto Body Shop, Inc., (Vann) brought a declaratory judgment action against its liability insurer, the Travelers Companies (Travelers), seeking a declaration that Travelers was obligated to defend it in connection with a third party action alleging environmental contamination arising out of the operation of Vann’s auto body repair business. The trial court granted summary judgment for Travelers (Code Civ. Proc. § 437c), thus relieving it of its duty to defend. We reverse, finding genuine issues of material fact exist as to whether the third party claims potentially come within the terms of the policy, precluding summary judgment for Travelers and triggering its duty to defend.

Facts

In July 1991, an action was commenced against Vann on behalf of the estate of Henry Williamson. From at least 1960 until 1992, Vann rented property in Berkeley, California, from Williamson for the operation of his auto body repair business. The complaint alleged that, while operating the business, Vann “improperly handled and disposed of oils, solvents and other substances, which are hazardous under state and federal law” and that as a…