Facts

Western World Insurance Co. sued Associated Industries Insurance Co. Inc. and Federal Insurance Co. in relation to a wrongful death action, which involved all three insurance companies.

In May 2014, Elliot Rodger killed six people and injured 14 others before committing suicide. Rodger's first three victims were murdered inside the Capri Apartments in Isla Vista, which are owned by Hi Desert Mobile Home Park LP and managed by Asset Campus Housing. Both Hi Desert and Asset were defendants in the wrongful death action, and reached an agreement by which they would pay plaintiffs in that action through their respective insurance companies. At the time of the events giving rise to the wrongful death action, Western provided general liability coverage to Asset, and Associated and Federal provided additional coverage on policies issued to Hi Desert. The insurance companies all agreed each retained the right to litigate the priority of insurance coverage arising from the wrongful death action and to seek indemnification of payments made to settle the underlying wrongful death action from the other insurers.

PLAINTIFF'S CONTENTIONS: Western alleged it was entitled to summary judgment on its claim for declaratory relief on the grounds its policy was excess to Associated's policy and it had no duty to defend Asset in the wrongful death action since that duty was exclusively Associated's. Western claimed the Associated policy afforded primary coverage to Asset with respect to claims in the underlying wrongful death litigation and the Western policy was excess, so Associated must bear the full burden of defending the wrongful death action.

DEFENDANT'S CONTENTIONS: Associated alleged it was entitled to summary judgment on its claim for equitable contribution for a share of defense costs incurred defending Asset in the wrongful death action because Western had a duty to participate in the defense notwithstanding the other insurance clause its policy contained. Associated further claimed Western improperly sought to avoid its defense obligation to Asset and its duty to reimburse Associated for its portion of defense costs in the underlying wrongful death litigation.

Result

The court granted Western's motion for summary judgment and denied Association's motion for summary judgment, finding that Western and Associated both afforded liability coverage to Asset for the wrongful death action, but the Western policy expressly applied only in excess to coverage afforded by the Associated policy. As such, the court determined Western had no duty to defend the underlying wrongful death litigation.

Other Information

According to plaintiff, this was the first of two sets of MSJs on the priority of coverage issues in the case. The second set of MSJs, between Western World and Federal Ins. Co., was scheduled to be heard by the court on March 22.