Bank of the West v. Superior Court
Opinion
Lead Opinion
Panelli, J.
Comprehensive general liability (CGL) insurance policies generally include coverage for “advertising injury.” This coverage, as ordinarily written, applies to “damages” the insured must pay for injury arising out of “unfair competition” occurring in the course of the insured’s “advertising activities.” We granted review to consider questions regarding the scope of coverage afforded by this standard policy language. As we shall explain, we hold that the CGL policy does not cover claims for advertising injury that arose under the Unfair Business Practices Act. (Bus. & Prof. Code, § 17200 et seq. 1 )
Facts and Procedural History
Plaintiffs Industrial Indemnity Company and Industrial Insurance Company of Hawaii, Ltd. (collectively Industrial) have sued for a declaratory judgment determining their obligations under a CGL policy issued to Central Bank. Defendant Bank of the West is Central Bank’s successor in interest. (This opinion refers to both entities collectively as the Bank.) Judgment has not been entered. However, by granting Industrial’s motion for summary adjudication of issues the trial court has decided that language in the Bank’s CGL policy relating to…
Concurring Opinion
Mosk, J.
I concur in the majority opinion insofar as it holds that disgorgement of sums obtained in violation of section 17203 of the Business and Professions Code is not “damages” for “advertising injury” caused by “unfair competition” under the policy. In my view, the opinion should conclude with the statement of this principle and its application to the facts of the case.
Discussion of the second point made by the majority, that there must be a causal connection between “advertising injury” and “advertising activities,” and that such a connection was not established, is entirely unnecessary to the opinion. I express no view as to its validity.
Kennard, J., concurred.
Opinion
Martha Chuchill, Thomas & Porrozzo, Michael H. Porrozzo, Anderson, Kill, Olick & Oshinsky, Eugene R. Anderson, William G. Passannante, Cotchett, Illston & Pitre, Joseph W. Cotchett, Susan Illston, Marie Seth Weiner, Morgan, Ruby, Schofield, Franich & Fredkin, Allen J. Ruby, Lexie D. Schroeder, Thomas T. Anderson, Sherry N. Bass, David A. Beck, Morrison & Hecker, P. John Owen, Ann S. DuRoss, Richard J. Osterman, Jr., Joan E. Smiley, Nossaman, Guthner, Knox & Elliott, Kurt W. Melchior, Jared E. Peterson, Alison S. Hightower, Patricia Lee Connors, Wilson, Sonsini, Goodrich & Rosati, Denise M. Amantea, Richard F. Cauley, Howard, Rice, Nemerovski, Canady, Robertson & Falk, Denis T. Rice, Helane L. Morrison, Kathryn M. Nelson, H. Joseph Escher III and Alan T. Foster as Amici Curiae on behalf of Petitioner.
No appearance for Respondent.
Lawrence O. Monin, Michael A. Mathews, Andre Hassid, Crosby, Heafey, Roach & May, Raoul D. Kennedy, Peter W. Davis, Richard de Saint Phalle, Dolores A. Dalton, Paul H. Breslin, Frank Gilbert, Jesse I. Santana, James C. Martin and James H. Kallianis, Jr., for Real Parties in Interest.