Omaha Indemnity Company v. Superior Court

209 Cal. App. 3d 1266, 258 Cal. Rptr. 66 (1989)

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Omaha Indemnity Company v. Superior Court

California Court of Appeal
209 Cal. App. 3d 1266, 258 Cal. Rptr. 66 (1989)

MP

Facts

Landlords Frank and Margaret Greinke (the Greinkes) (plaintiffs) sued their tenants, K.R. and Patricia Trefts, (the Trefts) (defendants) for property damage allegedly caused by them from an oil spill at the Greinke’s property and Omaha Indemnity Company (Omaha) (defendant) for declaratory relief, alleging that they were third-party beneficiaries of the general liability insurance contract between the Trefts and Omaha. Omaha demurred and alleged that because the Greinkes were not parties to the insurance contract and had not alleged an interest in the policy or a denial of coverage, there was no case or controversy pending against Omaha. The trial court denied the demurrer and Omaha’s alternative request to sever the declaratory action from the negligence action. Omaha sought relief by way of extraordinary writ. The appellate court initially denied the petition for a writ of mandate, but the case returned to the appellate court after the California Supreme Court granted review and ordered the case transferred back with direction to issue an alternative writ considering California Evidence Code § 1155, which precludes the use of evidence that an alleged tortfeasor has insurance for the injury the tortfeasor allegedly caused.

Rule of Law

Issue

Holding and Reasoning (Gilbert, J.)

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