Aerojet-General Corp. v. Commercial Union Insurance

Opinion

NICHOLSON, J.

This case concerns whether sums agreed to be paid as a settlement of litigation are subject to indemnification as “damages” under excess liability insurance policies. Plaintiff sued for breach of contract and declaratory relief against its excess liability insurance carriers due to their refusal to indemnify plaintiff for costs it incurred to remediate polluted real property pursuant to a settlement agreement from another legal action. The trial court granted summary judgment to the insurers, determining the insurers were not liable under the terms of their policies to…