Excess Carriers Promising to Indemnify for Damages Not Obligated to Fund Voluntary Settlement
Aerojet-General Corp. v. Commercial Union Ins. Co. (Cal. App., 3rd Dist., Sept. 13, 2007)
Court holds that excess carriers were not obligated to indemnify insured for sums insured agreed to pay as settlement of CERCLA claims, as sums were paid as part of settlement, and not court-adjudicated award of damages. Court relied on Certain Underwriters at Lloyd’s of London v. Superior Court, 24 Cal.4th 945 (2001), reasoning that term “damages” means only money ordered by a court to be paid.
