RECENT STATE DECISIONS

November 2005

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California Supreme Court Offers New Hope for Those Seeking to Trigger Coverage on Cleanup Costs Ordered by an Administrative Agency
Powerline Oil Company v. Superior Court of Los Angeles

On August 29, 2005, the California Supreme Court considered the question of whether the insurer’s duty to indemnify under excess/umbrella policies included indemnifying the insured in an administrative action, as opposed to a civil action prosecuted in court. Turning on the language of the policies, the Court answered in the affirmative and concluded that the broad language in the policies did extend indemnity coverage to administrative actions.