Golden Eagle Ins. v. Crusader Ins. CA2/5 legal decision

Filed 6/5/08 Golden Eagle Ins. v. Crusader Ins. CA2/5
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FIVE


GOLDEN EAGLE INSURANCE COMPANY,

Plaintiff and Respondent,

v.

CRUSADER INSURANCE COMPANY,

Defendant and Appellant.
B195904

(Los Angeles County
Super. Ct. No. BC295619)


APPEAL from a judgment of the Superior Court of Los Angeles County.
Judith Chirlin, Judge. Reversed.
Snyder Dorenfeld and David K. Dorenfeld for Defendant and Appellant.
Law Offices of Glenn M. White and Glenn M. White for Plaintiff and Respondent.
_______________

Defendant Crusader Insurance Company appeals the judgment in favor of plaintiff Golden Eagle Insurance Company for equitable contribution. Golden Eagle succinctly summarizes the issue before us as follows: "In this action for equitable contribution or indemnity, the parties dispute an issue of first impression in the California courts: whether an insurer can obtain an equitable recovery for providing a defense under a third-party liability insurance policy against a non-participating insurer in a situation where the insurance companies dispute whether they insure the same entity." We answer that question in the negative, and so reverse the judgment.

FACTS AND PROCEDURAL BACKGROUND
Golden Eagle provided standard third-party liability insurance to Inland Waterproofing & Sheet Metal dba Suprastone, Inc., a waterproofing business owned by J.D. Randles and Allan Kalpakoff, during the period 1990 to 1991. Crusader issued policies providing the same coverage to Superstone, Inc. dba Randles Waterproofing & Sheet Metal, and J.D. Randles dba Randles Construction, purportedly owned by Mr. Randles alone, for the periods including most of 1992 and 1993.
In 1989 and 1990, Suprastone, Inc., the business operated by Messrs. Randles and Kalpakoff and insured by Golden Eagle, performed waterproofing work in connection with the construction of the Burlington Apartments in Los Angeles. In 1996, Suprastone, Inc. was sued for construction defects by the owners of the Burlington Apartments. Both Golden Eagle and Crusader participated in the defense of that action. Suprastone, Inc. settled that lawsuit for $275,000, with Golden Eagle paying $148,500 of the settlement and Crusader paying $126,500.
Subsequently, a series of construction defect lawsuits were filed against Golden Eagle's named insured, Suprastone, Inc., in Los Angeles Superior Court by approximately 180 tenants alleging personal injury and property damage as a result of their exposure to mold in the Burlington Apartments. Golden Eagle provided a defense to Suprastone, Inc. in these lawsuits subject to a reservation of rights letter dated July 25, 2000. Also in July 2000, Golden Eagle tendered the defense of the underlying tenant actions to Crusader, which denied coverage because Suprastone, Inc. was not its insured.

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