Stonewall Surplus Lines Insurance Co. v. Johnson Controls, Inc.
California Court of Appeal
14 Cal. App. 4th 637, 17 Cal. Rptr. 2d 713 (1993)
- Written by Mary Phelan D'Isa, JD
Facts
A California jury in a negligence action involving a car battery that exploded and resulted in serious injuries to Gary Jones (plaintiff), a California resident, returned a verdict against a Wisconsin corporation, Johnson Controls, Inc., (Johnson) (defendant) for $6.5 million in exemplary damages. Johnson’s liability insurers—residents of Connecticut, Alabama, Texas, and Illinois—filed an action for declaratory relief alleging that they were not obligated to indemnify Johnson for the exemplary damages. Johnson alleged that Wisconsin law governed the policies and under Wisconsin law, the insurers were liable for both compensatory and exemplary damages. Under California public policy, an insured may not seek indemnity from an insurer for exemplary damages. The trial court entered judgment for the insurers, and Johnson appealed.
Rule of Law
Issue
Holding and Reasoning (Benke, J.)
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