Procedural Posture

In this insurance coverage action, cross-complainant County of San Diego, California, appealed a judgment of the Superior Court of San Diego County, California, entered against it after the trial court granted the summary adjudication and summary judgment motions of cross-defendant insurance company.

Overview: caci 215

An insurer issued a third party liability policy to the County of San Diego, California. The policy required the insurer to indemnify the County for all sums that the insured was obligated to pay by reason of liability, arising from "damages" caused by personal injuries or the destruction or loss of use of tangible property. After the County began operating a solid waste facility, the Regional Water Quality Control Board required it to investigate, monitor, and remediate groundwater contamination. Landowners nearby the County complained that groundwater contamination would affect the property's marketability. The County sought indemnification from its insurer for costs of remediating groundwater contamination and relocating nearby landowners. The insurer properly denied the claim. The term "damages" in the insuring clause of the insurer's policy was limited to sums ordered by a court.

Outcome

The judgment was affirmed.