Aerojet-General Corporation v. American Excess Ins. Co.

Plaintiff Aerojet-General Corporation (plaintiff or Aerojet) appeals from a judgment of dismissal entered after the trial court sustained, without leave to amend, a demurrer brought by the defendant insurers (defendants or insurers). The demurrer was sustained on the ground that Aerojet’s present action for declaratory relief was barred by principles of res judicata as a result of an earlier declaratory judgment that had concluded that Aerojet was not entitled to relief from the same defendants.

In the prior action, Aerojet-General Corp. v. Transport Indemnity Co. (1998) 17 Cal.4th 38 [ 70 Cal.Rptr.2d 118 , 948 P.2d 909 ] (Transport), Aerojet sought a declaration of the insurers’ coverage obligations for present and potential claims arising out of the discharge of chemical waste from the 1950’s to the 1980’s at or from property owned by Aerojet in eastern Sacramento County. Following a jury verdict, the trial court entered a judgment that held that the defendants—the same insurers sued in this action—“have no duty or obligation to indemnify Aerojet for any liability that Aerojet has incurred or may incur arising out of the alleged release of waste materials at or from…