Mercury Casualty Company v. Scottsdale Indemnity Company

Scottsdale Indemnity Company appeals from a judgment entered against it after the trial court granted a motion for summary judgment by Mercury Casualty Company (Mercury). Scottsdale contends the court erred in refusing to allow it to take discovery relating to the passage of Insurance Code section 11580.9, subdivision (g) (hereinafter section 11580.9(g) or the legislation) and Mercury’s involvement in that process.

Scottsdale feels the legislation, which requires both primary and excess automobile liability insurers to contribute to the cost of defending an insured in proportion to the amount each pays to satisfy the liability claim, constitutes “special interest” legislation passed for the specific benefit of Mercury, and violates the contracts clause of the United States Constitution, as well as the due process clauses of both the United States and California Constitutions. Its argument is that if it had been allowed to complete its requested discovery in this case, it would have been able to establish a dispute of fact with regard to those issues.

We are not persuaded. Even assuming Mercury was the primary force behind the successful legislation, we can discern no…