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Insurance

Jan. 7, 2011

Different Standards for Environmental Cases?

A review of the state Supreme Court's multiple approaches to interpreting insurance policies in environmental disputes.

Rex Heeseman

JAMS

555 W 5th St Fl 32
Los Angeles , CA 90013-1055

Phone: (213) 253-9772

Fax: (213) 620-0100

Email: rheeseman@jamsdar.com

Stanford Univ Law School

Rex Heeseman retired from the Los Angeles Count Superior Court bench in 2014. He is at JAMS, Los Angeles. Besides speaking at various MCLE programs, he co-authors The Rutter Group's practice guide on "Insurance Litigation." From 2002 to 2015, he was an adjunct professor at Loyola Law School.

In California insurance law, "ambiguity is king" once dominated (i.e., if the term is "ambiguous," the insurer loses). But an environment case, AIU Ins. Co. v. Superior Court, 51 Cal.3d 807 (1990), applied Civil Code rules of contract interpretation with respect to construing insurance policies. Specifically, as invariably a question of law, a judge should follow, in sequence: "plain meaning"; if two meanings seem plausible, the "insured's objectively reasonable expectations"; and...

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