Meritplan Insurance Co. v. Superior Court

Opinion

COMPTON, J.

In this proceeding in mandamus we review a protective order issued by the trial court, which order, inter alia, prevents one party to an action from deposing attorneys for opposing parties and subpoenaing certain records of those attorneys for use in conjunction with the taking of the deposition. We have determined that the protective order should be vacated.

The dispute has its origin in a personal injury action entitled Simmons v. Wexler, Los Angeles Superior Court No. NE C 18803. Meritplan Insurance Company, petitioner herein, insured Wexler under a general liability policy with $15,000 and $30,000 limits.

Wexler was a teacher employed by the Los Angeles Unified School District, which entity was itself insured by Central National Insurance Company. Wexler’s policy with Meritplan Insurance Company contained an indorsement for an additional $25,000 coverage for activities arising out of her “business pursuits.”

Meritplan took the position that that indorsement was not applicable to the facts of this case and, in any event, was “excess” to other insurance coverage. It offered to settle the case for $15,000. Meritplan advised Wexler that her potential exposure exceeded the policy limits and she engaged the services of the firm of Sackin & Gold, attorneys at law. Extensive settlement negotiations ensued. Simmons, through his attorney, Barry Novack, proposed a settlement which required Meritplan to pay $40,000. Meritplan refused.

A judgment was entered awarding Simmons $125,000 in damages against Wexler. The judgment was paid by Central National.

In the interim, Meritplan filed the present action for declaratory relief (Super. Ct. No. NEC 22474) which underlies this petition for

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mandate. In that action, Meritplan sought a declaration of the extent of its coverage under the policy.

Following entry of the judgment in the personal injury action, Wexler, Simmons and Central National all filed cross-complaints in the declaratory relief action alleging a wrongful refusal to settle on the part of Meritplan.