Ford Motor Co. v. Home Insurance Co.2/2/1981
COURT OF APPEAL OF CALIFORNIA, SECOND APPELLATE DISTRICT, DIVISION ONE
Civ. No. 58333
1981.CA.41017 ; 116 Cal. App. 3d 374; 172 Cal. Rptr. 59
February 2, 1981
FORD MOTOR COMPANY, PLAINTIFF AND APPELLANT,
v.
HOME INSURANCE COMPANY ET AL., DEFENDANTS AND RESPONDENTS
Superior Court of Los Angeles County, No. C 244765, Robert I. Weil, Judge.
McCutchen, Black, Verleger & Shea, Howard J. Privett, David S. MacCuish and Nancy A. Newhouse for Plaintiff and Appellant.
La Follette, Johnson, Schroeter & DeHaas, Daren T. Johnson, Alfred W. Gerisch, Jr., Dennis K. Ames, Mendes & Mount, Morris, Polich & Purdy, Landon Morris, John K. Morris, Robert S. Wolfe, Lawler, Felix & Hall, Erwin E. Adler, William S. Davis, Crosby, Heafey, Roach & May, Edwin A. Heafey, Jr., Peter W. Davis, James C. Martin, Alan D. Hamilton, Hillsinger Costanzo, John J. Costanzo, Brian F. Zimmerman, Vletas & Greer, Robert Greer, Hall, Henry, Oliver & McReavy, Stephen McReavy, Lewis, D'Amato, Brisbois & Bisgaard, Robert F. Lewis, R. Gaylord Smith, Overton, Lyman & Prince, Carl J. Schuck, Kelley K. Beck, Kadison, Pfaelzer, Woodard, Quinn & Rossi, John Michael McCormick, Ellen B. Friedman, Laurence J. Hutt, Herzfeld & Rubin, Michael A. Zuk, Grossman & Shames and Harvey M. Grossman for Defendants and Respondents.
Opinion by Spencer, P. J., with Hanson (Thaxton), J., and Aubry, J., concurring.
Spencer
Introduction
Plaintiff Ford Motor Company appeals from various judgments dismissing its request for a declaration that plaintiff is entitled to indemnity from defendants insurers (respondents herein) for punitive damages assessed against plaintiff as defendant in actions arising from defects in Ford automobiles or other automotive products. The trial court granted judgments in favor of the various insurers on the basis that insurance coverage of punitive damages is against public policy and is barred as a matter of law under the authority of City Products Corp. v. Globe Indemnity Co. (1979) 88 Cal. App. 3d 31 [151 Cal. Rptr. 494], petition for hearing denied, February 28, 1979.
Facts
Appellant filed a complaint for declaratory relief in June 1978. The complaint sets forth the factual background and basis for the declaratory
relief action. Appellant has excess liability policies with each of the respondents. The policies explicitly cover all sums which appellant becomes legally obligated to pay as damages for products liability. None of the policies specifically excludes coverage for punitive or exemplary damages.
The complaint further states that in recent legal actions against appellant, both compensatory and punitive damages have been sought for personal injuries and property damage resulting from defects or faulty design of appellant's automobiles or automotive products. One of the actions, Grimshaw, a Minor, etc. v. Ford Motor Co. (Super. Ct. Orange Co., No. 197761), had been fully litigated at the time the complaint was filed. The jury in Grimshaw awarded punitive damages on the basis of its finding that appellant had performed an intentional act in conscious disregard of its possible results. Appellant contended in Grimshaw that punitive damages could not be awarded because there was no evidence of willful intent to inflict injury.
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