New Hampshire Insurance v. Ridout Roofing Co.

I. Introduction

This is an appeal from a summary judgment granted in favor of the plaintiff and respondent (insurer) and against the defendant and appellant (insured). Both parties brought motions for summary judgment; the trial court granted the insurer’s and denied the insured’s. The case principally poses the issue of the insurer’s right to settle multiple claims brought against the insured when that settlement substantially impacts the insured’s $5,000 “per occurrence” deductibles. We affirm.

II. Factual and Procedural Background

The appellant, the insured, is a San Lorenzo (Alameda County) based roofing contractor which does business substantially in that and neighboring counties. During the relevant time period, the insured did many major roofing jobs for, e.g., developers and general contractors on condominium and subdivision projects.

During the one year from May 1, 1989, to May 1, 1990, it was insured under a commercial general liability policy (CGL) issued by the respondent, the insurer. During the period between May 1989 and June 1994,11 separate claims were made against that policy, some in the form of simple claims, others apparently via actual…