Aerojet-General Corp. v. Transport Indemnity Co.
California Supreme Court
17 Cal. 4th 38, 70 Cal. Rptr. 2d 118, 948 P.2d 909 (1997)
Aerojet-General Corporation (Aerojet) (plaintiff) had a comprehensive, or commercial, general liability (CGL) insurance policy issued by Transport Indemnity Company (Transport) (defendant). The policy was supposed to indemnify Aerojet for damages Aerojet became legally obligated to pay for property damage resulting from its discharge of hazardous chemicals. Being a CGL policy, the policy also carried a duty for Transport to defend Aerojet in any action that was brought against Aerojet seeking damages that were potentially covered under the policy’s terms. As with similar discharges of hazardous chemicals, Aerojet started getting sued for property damage that occurred over time after chemicals that had been released during its coverage period began spreading under the surface. The ultimate issue in this case involved whether Transport had a duty to defend Aerojet in lawsuits to recover damages for which Aerojet could have become liable after the policy period but that resulted from, or potentially resulted from, a covered occurrence.
Rule of Law
Holding and Reasoning (Mosk, J.)
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