NEW INSURANCE DECISION DEFINING"OCCURRENCE" IN ASBESTOS CASE HEADS FOR SUPREME COURT
On February 20, 2007, Truck Insurance Exchange filed a petition for review in the California Supreme Court in a major asbestos exposure case, London Market Insurers v. Superior Court (Truck Insurance Exchange), Case No. S150310. Click here to read the Court of Appeal's published opinion, which was filed January 9, 2007.
The petition for review requests that the Supreme Court review the following issues:
Do multiple claims of asbestos bodily injury arising from exposure to asbestos in the insured's products constitute a single occurrence under a comprehensive general liability ("CGL") policy where (i) the insured made a single decision to incorporate asbestos into its products as to each of three families of products at issue, (ii) claimants cannot identify which products caused their injuries, and (iii) the only basis for the insured's claimed liability is that its products contain asbestos?
This case presents a significant issue concerning the meaning of the term "occurrence" as used in insurance policies.
The Court of Appeal ruled that "occurrence," as defined in a comprehensive general liability policy, was the "injurious exposure to asbestos" and could not mean "'the conscious inclusion of asbestos in products manufactured and distributed by the policyholder.'"
As a result of this decision, there is uncertainty in California law concerning the meaning of "occurrence", which has ramifications for all insurers and insureds under any policy that uses "occurrence" language in underwriting risks.
To assist in the effort to secure review by the Supreme Court, you can file a brief letter stating the nature of your interest and your belief that this case presents an important issue for the court to review. Letters should be submitted no later than March 12 to ensure their effective consideration by the court.
If you have any questions, please contact Horvitz & Levy partners Peter Abrahams or David Axelrad by e-mail (pabrahams@horvitzlevy.com or daxelrad@horvitzlevy.com) or by phone, (818) 995-0800.
If you do not wish to continue to receive these informational bulletins, please e-mail jpaul@horvitzlevy.com with a subject line "UNSUBSCRIBE."
Copyright © 2007 Horvitz & Levy LLP. All rights reserved.