London Market Insurers v. Superior Court

This petition for writ of mandate presents an issue of first impression in this state; the meaning of “occurrence” in a commercial general liability (CGL) policy as applied to bodily injuries caused by exposure to asbestos. We conclude that, as used in the policies at issue, “occurrence” means injurious exposure to asbestos* not the manufacture and distribution of those products. Accordingly, we grant the writ and direct the trial court to vacate its summary adjudication order.

INTRODUCTION

Real party in interest Kaiser Cement & Gypsum Corporation (Kaiser) manufactured a variety of products containing asbestos (asbestos products) for more than 30 years. In recent years, Kaiser has been named as a defendant in products liability suits brought by thousands of claimants who allege they were injured by their exposure to Kaiser’s asbestos products. These claims have been defended by Kaiser’s primary general liability carrier, real party in interest Truck Insurance Exchange (Truck).

After making indemnity payments for Kaiser of more than $50 million, Truck filed an action seeking, among other things, a declaratory judgment that Truck’s policies were exhausted and that Truck…