Truck Insurance Exchange v. Kaiser Cement CA2/4

INTRODUCTION

This is the latest of several opinions issued by this court in litigation concerning comprehensive general liability (CGL) insurance coverage for asbestos bodily injury claims (referred to by the parties as ABIC) against Kaiser Cement and Gypsum Corporation (Kaiser). The ABIC were brought mostly by laborers who became ill and/or died from exposure to asbestos-containing products manufactured by Kaiser over more than 30 years. Truck Insurance Exchange (Truck), Kaiser’s primary insurer, commenced this action in 2001, after making more than $50 million in indemnity payments to resolve ABIC against Kaiser. Truck sought declaratory relief that its primary coverage of ABIC had been exhausted and it had no further duty to defend or indemnify Kaiser. Truck also sought contribution from certain of Kaiser’s excess insurers. Kaiser cross-claimed against Truck and Kaiser’s excess insurers, seeking a declaration of coverage.

3 A. Earlier Opinions

In the first opinion, London Market Insurers v. Superior Court (2007) 146 Cal.App.4th 648 (LMI), a different panel of this court resolved what it described as a matter of first impression in California: the meaning of “occurrence”…