Aerojet-General Corporation v. American Excess Ins. Co.

117 Cal. Rptr. 2d 427, 97 Cal. App. 4th 387
CourtCalifornia Court of Appeal
DecidedApril 2, 2002
DocketC030874
StatusPublished
Cited by31 cases

This text of 117 Cal. Rptr. 2d 427 (Aerojet-General Corporation v. American Excess Ins. Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aerojet-General Corporation v. American Excess Ins. Co., 117 Cal. Rptr. 2d 427, 97 Cal. App. 4th 387 (Cal. Ct. App. 2002).

Opinion

*392 Opinion

KOLKEY, J.

Plaintiff Aerojet-General Corporation (plaintiff or Aerojet) appeals from a judgment of dismissal entered after the trial court sustained, without leave to amend, a demurrer brought by the defendant insurers (defendants or insurers). The demurrer was sustained on the ground that Aerojet’s present action for declaratory relief was barred by principles of res judicata as a result of an earlier declaratory judgment that had concluded that Aerojet was not entitled to relief from the same defendants.

In the prior action, Aerojet-General Corp. v. Transport Indemnity Co. (1998) 17 Cal.4th 38 [70 Cal.Rptr.2d 118, 948 P.2d 909] (Transport), Aerojet sought a declaration of the insurers’ coverage obligations for present and potential claims arising out of the discharge of chemical waste from the 1950’s to the 1980’s at or from property owned by Aerojet in eastern Sacramento County. Following a jury verdict, the trial court entered a judgment that held that the defendants—the same insurers sued in this action—“have no duty or obligation to indemnify Aerojet for any liability that Aerojet has incurred or may incur arising out of the alleged release of waste materials at or from property occupied at one time or another by Aerojet in Eastern Sacramento County . . . .”

In the present action, Aerojet seeks a declaration that it is entitled to insurance coverage for new claims brought against it by private landowners, who allege that from the 1950’s to the 1980’s, harmful chemicals, including ammonium perchlorate, were discharged into the groundwater at a site owned by plaintiff in eastern Sacramento County. In seeking such a declaration, Aerojet disputes the scope of the judgment entered in the Transport action, claiming that ammonium perchlorate was not one of the chemicals at issue in the Transport action, that the method of disposal of the ammonium perchlorate (burning) was different from the method of disposal (dumping) at issue in the Transport action, and that a site of the pollution in the instant case—the McDonnell Douglas/Inactive Rancho Cordova Test Site property—is different from the site litigated in Transport.

As we shall explain, whatever the validity of Aerojet’s objection to the breadth of the Transport judgment, the time for Aerojet to have objected was before the judgment became final. Having elected not to pursue an appeal over the scope of that judgment, Aerojet may not now seek to mount a collateral attack on the breadth of that judgment. (Kupfer v. Brawner (1942) 19 Cal.2d 562, 564 [122 P.2d 268].) Once the judgment became final, a collateral attack on it for nonjurisdictional error is not permitted. (8 Witkin, *393 Cal. Procedure (4th ed. 1997) Attack on Judgment in Trial Court, § 6, p. 514.) The invocation of a final judgment as res judicata in a subsequent action is not an invitation to the losing party to collaterally attack the judgment on nonjurisdictional grounds, ironically defrocking the judgment of the very finality upon which the res judicata doctrine depends.

Moreover, the application of the doctrine of res judicata to declaratory judgments, while more narrow than for other judgments, nonetheless extends to the matters declared on the face of the judgment, as well as to any issue actually litigated and determined in that prior action. (Rest.2d Judgments, § 33, p. 332.) The matters declared on the face of the Transport judgment unequivocally cover the disputes raised in the present action.

Finally, even if the language of the Transport judgment were not deemed to unequivocally encompass the disputes raised in the present action, and we were to examine the record to determine the judgment’s scope, Aerojet’s present action for declaratory relief would be barred by res judicata because coverage for pollution caused by ammonium perchlorate on property occupied by Aerojet in eastern Sacramento County had clearly been placed at issue in the Transport litigation. Admittedly, the Transport litigation focused on pollution caused by the discharge of three chemicals in particular— trichloroethylene (TCE), ethylene dichloride (EDC), and N-nitrosodimethylamine (NDMA). But the gravamen of the action, as framed by Aerojet’s pleading, was whether defendants had an obligation to provide insurance coverage for any claims arising out of chemical releases on any property owned or operated “at one time or other” by Aerojet in eastern Sacramento County. Aerojet specifically asked the Transport jury for a ruling that would be so broad in scope that it would avoid a future lawsuit about insurance coverage for any chemical pollution, including that caused by ammonium perchlorate. It received such a judgment, albeit not one to its liking, and may not now relitigate the issue.

Accordingly, we shall affirm the judgment of dismissal.

Factual and Procedural Background

I. General Background

The Transport judgment was the culmination of a course of litigation beginning in 1979. In that year, the State of California brought an action against Aerojet under the Porter-Cologne Water Quality Control Act based on chemical waste contamination. (Transport, supra, 17 Cal.4th at p. 47.)

*394 Beginning in 1980, a number of private individuals filed damage actions against Aerojet, charging that throughout the course of Aerojet’s operations from the early 1950’s to the 1980’s, Aerojet had discharged numerous hazardous substances in an ongoing fashion at its eastern Sacramento County property and thereby caused pollution in and around that location, resulting in continuous and/or progressively deteriorating bodily injury and/or property damage. (Transport, supra, 17 Cal.4th at p. 47.)

In 1986, the federal government brought an action against Aerojet under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. § 9601 et seq.) (CERCLA), seeking to require Aerojet to remedy the pollution and its effects at its Sacramento site and to reimburse the United States for its removal and remedial costs. (Transport, supra, 17 Cal.4th at p. 47.) Simultaneously, the State of California brought a parallel CERCLA action, seeking reimbursement to the state for the costs that the latter had and would incur in remedying the effects of the pollution. (Ibid.)

II. The First Declaratory Relief Action: The Transport Action

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Cite This Page — Counsel Stack

Bluebook (online)
117 Cal. Rptr. 2d 427, 97 Cal. App. 4th 387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aerojet-general-corporation-v-american-excess-ins-co-calctapp-2002.