Pines of La Jolla Homeowners Ass'n v. Industrial Indemnity

Opinion

FROEHLICH, J.

This case presents the narrow issue of whether an insurer may rely on a clause in its insurance policy (the so-called “other insurance” clause) to escape liability for damages which may have occurred during its policy period, merely because a second insurer in fact paid such damages as part of a settlement on behalf of the insured. We conclude, on the facts presented here, that mere payment of settlement proceeds by the second insurer did not constitute that insurer’s binding admission of its liability for all claims presented in the lawsuit, and hence summary judgment…