Safeco Ins. Co. of America v. Superior Ct.

We hold that in an action for equitable contribution by a settling insurer against a nonparticipating insurer, the settling insurer has met its burden of proof when it makes a prima facie showing of coverage under the nonparticipating insurer’s policy—the same showing of potential coverage necessary to trigger the nonparticipating insurer’s duty to defend—and that the burden of proof then shifts to the recalcitrant insurer to prove the absence of actual coverage.

FACTS

A.

Thirteen construction companies purchased commercial general liability insurance from either Safeco Insurance Company of America or American States Insurance Company, and the same 13 insureds later purchased additional commercial general liability policies from Century Surety Company. All of the policies were primary for the relevant times, and all provided coverage for property damage that occurred within the policy period and arose from the scope of the contractors’ work.

In 17 separate lawsuits, the 13 insureds were sued for property damage allegedly arising from their work during the periods covered by the Safeco, American States, and Century policies. In each case, the insured tendered its…