Wilmington Liquid Bulk Terminals, Inc. v. Somerset Marine Inc.

Introduction

In this case we are called upon to examine the scope of “personal injury” coverage contained in a general liability policy issued to the insured in the context of an action against the insurers for breach of contract and breach of the covenant of good faith and fair dealing. The trial court granted summary judgment in favor of the insurers and against the insured, finding the “personal injury” coverage inapplicable to what is, in essence, a breach of contract action. We agree and affirm the trial court.

Factual and Procedural History

The contractual relationships of the parties.

Appellant, Wilmington Liquid Bulk Terminals, Inc. (Wilmington) is a company which provides warehouse and docking facilities at the port of Los Angeles. Wilmington entered into a contract with National Cement Company of California, Inc. (National Cement) whereby Wilmington would obtain all permits for and construct a dock suitable for use by National Cement for loading and unloading of cement products. Wilmington failed to obtain the necessary permits including environmental permits, and therefore the dock was never constructed.

The litigation between National Cement and…