Oxnard Union High School District v. Teachers Insurance

Opinion

COBEY, Acting P. J.

The sole question on this appeal by Teachers, Insurance Company is who, is liable for the payment of $115,000 to Robert L. Chambers and for the payment of attorneys’ fees and court costs in stipulated amounts incurred in the defense of his suits against Oxnard Union High School District and Ova L. Farrow. The trial court adjudged that Teachers, Farrow’s insurer, was liable for $100,000, its policy limits, and United Pacific Insurance Company, District’s insurer, was liable for $15,000 in excess coverage and that the liability for the attorneys’ fees and court costs should be divided between the two insurers proportionately to the principal liabilities just stated. The rationale for this determination was that Teachers’ insurance policy covering Farrow and the. District as an additional insured afforded primary coverage and United’s insurance policy covering the District afforded only coverage excess to that provided by Teachers ($100,000).

Teachers does not challenge this result on the ground that the court misconstrued the two insurance policies. Teachers’ position is that this result is contrary to the Governmental Tort Liability Act of 1963, division 3.6 of the Government Code.

1

We disagree and affirm.

On November 3, 1967, Farrow, a history teacher, while acting in the course and scope of his employment as an assistant football coach of the District and while driving his own automobile, struck a motorcycle operated by Chambers. Chambers was injured in the accident and thereafter filed negligence actions against Farrow and the District separately. Teachers and United, respectively, undertook to defend Farrow and the District.

On August 22, 1969, pursuant to sections 825 and 995 of the Governmental Tort Liability Act of 1963,

2

Farrow made written request of the

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District that it defend him in, Chambers’ suit against him. On November 3, 1969, the District through its counsel rejected the request. On January 5, 1970, by oral stipulation made in open court between counsel for Chambers, Farrow and the District, Chambers’ two actions were settled for $115,000 to be paid as determined in the case before us. On March 3, 1970, the District formally rejected Farrow’s request that the District defend him in Chambers’ suit against him on the ground that such defense would create a conflict of interest between the District and Farrow.