Employers Ins. Co. of Wausau v. Rick Concrete Construction CA4/1

INTRODUCTION

Rick Concrete Construction, Inc. (Rick Concrete) appeals, and Employers

Insurance Company of Wausau (Wausau) cross-appeals, from a judgment of the trial

court resolving a dispute between the parties regarding Wausau's handling of third party

liability and first party physical damage claims under a business auto policy issued by

Wausau. The parties' dispute arose from a February 2006 fatal accident at a construction

site in Murrieta, California, involving concrete pumping equipment leased by Rick

Concrete.

The trial of this action occurred in two phases. The first phase, tried to the court in

July 2008, involved Wausau's claims for declaratory relief regarding preliminary

coverage issues, including whether the equipment involved in the accident was a covered

"auto" under Wausau's policy, and whether the "operations" exclusion of the policy

applied. The second phase, tried to a jury in March 2010, involved Rick Concrete's

cross-claims for damages based on, among other allegations, Wausau's alleged breach of

contract, bad faith and fraud in the handling of Rick Concrete's insurance claims.

As reflected in the July 1, 2010…