Continental Ins. Co. v. Lexington Ins. Co.

Introduction

This appeal arises out of an insurance coverage dispute between plaintiff and appellant Continental Insurance Company (Continental) and defendant and respondent Lexington Insurance Company (Lexington). Continental appeals from a judgment of dismissal entered after a demurrer was sustained without leave to amend to its complaint for equitable indemnity, contribution, and declaratory relief against Lexington. We affirm the judgment.

Factual and Procedural Background

This insurance coverage dispute arose out of a catastrophic, multivehicle traffic accident which occurred in January 1992. The accident was allegedly caused by the driver of a tractor/trailer rig, Inocencio Contreras. Contreras was acting as agent of Southern California Motor Delivery, Inc. (SCMD), the lessee of the tractor/trailer rig. American Presidents Lines, Ltd. (APL) was the lessor of the trailer portion of the rig; Ruan Leasing Company (Ruan) was the lessor of the tractor portion, or “power unit,” of the rig.

Continental issued a liability insurance policy, described in more detail below, to APL. Defendant Planet Insurance Company (Planet) issued a liability insurance policy to Ruan.…