Excess Policy Win Gives Calif. Insureds Hope For The Future

By Michael Fehner (April 28, 2020, 5:45 PM EDT) -- In its April 6 decision in Montrose Chemical Corp. v. Superior Court of Los Angeles,[1] the California Supreme Court gave insureds facing so-called long-tail liabilities — such as environmental contamination or asbestos bodily injuries, which can last for decades and implicate multiple insurance policy periods — a very valuable present.

In an opinion pragmatically designed to lessen policyholders' practical obstacles to securing indemnification, and allowing the insured immediate access to the insurance it purchased,[2] the court rejected the insurers' contention that the insured had to exhaust every policy at a particular layer of coverage in order to proceed to the next...

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