Associated Aviation Underwriters v. PUREX INDUSTRIES

Certified for Partial Publication [*]

Between January of 1967 and August of 1971, respondent Associated Aviation Underwriters, Inc. ("AAU"), insured the Pacific Airmotive Corporation, an aircraft engine repair business in Burbank. Pacific Airmotive's parent corporation, Purex Corporation, Ltd, was a named insured with respect to liabilities arising out of Pacific Airmotive's business activities. In the 1980s, the insured corporations were reformed and restructured in varied and interesting ways—the exact nature of those transactions is in dispute here. By the 1990s, neither Purex California nor Pacific Airmotive existed. What did exist were lawsuits alleging that Pacific Airmotive's business activities during AAU's policy periods caused damages.

Appellants UNC Pacific Airmotive Corporation, Inc. and UNC, Inc. (collectively, "UNC"), [1] and a corporation the parties refer to as "New PII" (New Purex / ndustries / nc.) were sued in those actions. They sought coverage from AAU. Appellants contended that they were the successors to Pacific Airmotive's insurance rights and New PII contended that it was the successor to the Purex Corporation's insurance rights.

AAU…