Home Ins. Co. v. Superior Court

103 P.3d 283, 22 Cal. Rptr. 3d 885, 34 Cal. 4th 1025
CourtCalifornia Supreme Court
DecidedJanuary 13, 2005
DocketS110328
StatusPublished
Cited by27 cases

This text of 103 P.3d 283 (Home Ins. Co. v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Ins. Co. v. Superior Court, 103 P.3d 283, 22 Cal. Rptr. 3d 885, 34 Cal. 4th 1025 (Cal. 2005).

Opinion

22 Cal.Rptr.3d 885 (2005)
34 Cal.4th 1025
103 P.3d 283

The HOME INSURANCE COMPANY, Petitioner,
v.
The SUPERIOR COURT of Los Angeles County, Respondent;
Montrose Chemical Corporation of California, Real Party in Interest.

No. S110328.

Supreme Court of California.

January 13, 2005.

Charlston, Revich, Chamberlin & Williams, Charlston, Revich & Chamberlin, Stephen P. Soskin and Timothy F. Rivers, Los Angeles, for Petitioner.

No appearance for Respondent.

Latham & Watkins, David L. Mulliken, San Diego, Charles S. Treat, San Francisco, Diana Strauss Casey and Marc D. Halpern, San Diego, for Real Party in Interest.

Heller, Ehrman, White & McAuliffe, David B. Goodwin; Munger, Tolles & Olson, Cary B. Lerman, Paul J. Watford, Los Angeles, and Anne M. Voigts, San Francisco, for Kelly-Moore Paint Company, Inc. and Bayer CropScience Inc., as Amici Curiae on behalf of Real Party in Interest.

*886 GEORGE, C.J.

After federal and state authorities brought several actions against real party in interest Montrose Chemical Corporation of California (Montrose Chemical), seeking recovery for environmental damage allegedly caused by its operations at several sites, Montrose Chemical filed a lawsuit seeking declaratory relief against its primary insurance carriers to establish their duties to defend or indemnify pursuant to the operative commercial general liability policies. One of the defendant primary insurance carriers invoked Code of Civil Procedure section 170.6, permitting the exercise of one challenge against the assigned trial judge by each "side" in the litigation, and the case was reassigned to a new trial judge.[1] Eventually, the parties entered into settlement agreements, and the primary insurance carrier defendants were dismissed from the action.

Montrose Chemical amended its complaint to name as a defendant its "excess" insurance carrier, The Home Insurance Company (Home Insurance), which also invoked section 170.6 in attempting to exercise a challenge against the trial judge. After objection by Montrose Chemical to this attempted challenge, the trial judge *887 ordered it stricken on the ground that the interests of Home Insurance were aligned with those of the primary insurers, and that therefore Home Insurance must be regarded as on the "same side" in the litigation as the party that previously had exercised the sole challenge available to that side under the statute. In subsequently granting a petition of Home Insurance for a writ of mandate, however, the Court of Appeal determined that "more often than not" primary and excess insurance carriers have "substantially adverse interests" requiring that they be regarded as on different "sides," and that therefore Home Insurance was entitled to exercise a separate challenge.

We granted review to decide whether, in a single action brought by the insured against both its primary and excess insurers, the interests of the two types of insurers must be deemed "substantially adverse," relegating them to different "sides" in the litigation and entitling an after-named excess insurance carrier to the exercise of a separate challenge pursuant to section 170.6, despite the previous exercise of such a challenge by a primary insurance carrier.[2] As we shall explain, we conclude that primary and excess insurance carriers do not necessarily have "substantially adverse interests," and that the trial judge, having determined that Home Insurance had not established that defendants' interests were substantially adverse, did not err in striking the challenge of Home Insurance. Accordingly, we reverse the judgment rendered by the Court of Appeal.

I

Commencing in 1983, the federal government and the State of California brought a series of actions against Montrose Chemical seeking recovery for environmental damage allegedly caused by its operations at various sites. In 1990, following the filing of the second action against it, Montrose Chemical brought an action naming as defendants its primary insurers and seeking declaratory relief with regard to defense or indemnification under the operative commercial general liability policies. (Montrose Chemical Company of California v. Canadian Universal Insurance Company, Inc., et al. *888 [now Certain Underwriters at Lloyd's, et al.] (Sup.Ct. L.A. County, No. BC 005158)); see also (Montrose Chemical Corp. v. Superior Court (1993) 6 Cal.4th 287, 24 Cal.Rptr.2d 467, 861 P.2d 1153). In that year, a defendant primary insurer exercised a challenge pursuant to section 170.6 against the trial judge (Judge G. Keith Wisot) then presiding. Following assignment of a succession of judges, in 1993 Judge Joseph R. Kalin was assigned to the case for all purposes. Over the greater part of the next decade, Montrose Chemical reached settlements with defendant primary insurers, who subsequently were dismissed from the action.

In 2001, Montrose Chemical filed a second amended complaint naming as a defendant Home Insurance, an insurer providing coverage of liability in excess of the maximum coverage for liability provided by the policies of the primary insurers. In 2002, after filing its answer to Montrose Chemical's third amended complaint, Home Insurance attempted to exercise, pursuant to section 170.6, a challenge against Judge Kalin. Montrose Chemical filed an objection to the challenge on the ground that the defense side previously had exercised the sole challenge authorized by that statute.

Judge Kalin held a hearing and found that both the primary and the excess insurers had taken the position that Montrose Chemical is not entitled to defense or indemnification under the terms of the policies, that the issues — in particular, that of the obligation to indemnify Montrose Chemical — had been before the court for a number of years, that the pleadings of Home Insurance "somewhat mirror[ed] the pleadings of other insurance companies in [the] case," and that, as between Home Insurance and the primary insurers that previously had settled with Montrose Chemical, no claims existed relating to exhaustion of policy limits or other issues. Based upon those findings, Judge Kalin determined that the interests of Home Insurance, as an excess insurer, were not substantially adverse to those of the primary insurers. Having found the insurers to be on the same side, the judge ordered stricken the section 170.6 challenge filed by Home Insurance.

Home Insurance filed a petition for writ of mandate in the Court of Appeal, seeking to have the appellate court direct the trial judge to grant the carrier's motion to exercise a separate section 170.6 challenge. The appellate court concluded that as an excess insurer, Home Insurance was entitled to exercise a separate challenge because, as a general matter, the interests of defendant primary and excess insurers are substantially adverse, and that to require a trial court to make a factual determination on the issue of conflict of interest would unduly burden that court with the responsibility of deciding the merits of the case. The Court of Appeal granted the petition and issued the requested writ of mandate. We granted review on petition of real party in interest Montrose Chemical.

II

The right to exercise a so-called peremptory challenge against a judge is a creation of statute — it did not exist in the common law predating enactment of section 170.6. (Pappa v. Superior Court (1960) 54 Cal.2d 350, 354, 5 Cal.Rptr.

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Cite This Page — Counsel Stack

Bluebook (online)
103 P.3d 283, 22 Cal. Rptr. 3d 885, 34 Cal. 4th 1025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-ins-co-v-superior-court-cal-2005.