Litho Color, Inc. v. Pacific Employers Insurance

Litho Color sought coverage under a “Boiler and Machinery” (B&M) endorsement to its commercial property insurance policy for claims arising in October 1991 and February 1992. Pacific Employers Insurance Company (PEIC) issued the B&M policy; however, it was fully reinsured by Hartford Steam Boiler Inspection and Insurance Company (HSB). Prior to trial, Litho and PEIC reached a settlement that released PEIC from certain claims and liabilities in exchange for $335,000, but technically kept PEIC in the suit.

On appeal, Litho, HSB and PEIC each assign errors to the trial court’s rulings with…