Imperial Irrigation District v. Chubb/Pacific Indemnity Group

Opinion

COLOGNE, J. Imperial Irrigation District (District) filed this action against Chubb/Pacific Indemnity Group (Pacific) to recover damages it was obliged to pay the heirs of Pedro L. Leal under an order of the Workers’ Compensation Appeals Board (Board) for compensation awarded for “serious and willful misconduct.” The trial court found for the District and entered judgment for $9,333.39. Pacific appeals.

No issue is made as to the propriety of the Board’s award of compensation against the District for serious and willful misconduct pursuant to Labor Code section 4553 by reason of the failure of District employees to properly slope or shore up the sides of a trench.1 The [319]only issue is whether Pacific is required to indemnify the District for this award.

The California Public Entity Special Comprehensive Liability Policy issued by Pacific for the District provides the following coverage:

“1. Coverage A—Bodily and Personal Injury Liability

“To pay on behalf of the insured all sums which the insured shall become obligated to pay by reason of liability imposed by law, including Chapter 1681 of the State of California Statutes of 1963, or liability assumed by contract, insofar as the named insured may legally do so, for damages:

“(1) because of bodily injury, sickness or disease, including death at any time resulting therefrom and also including care and loss of services, sustained by any person or persons, or

“(2) because of any other injury a person may suffer to his person, reputation, character or feelings, including but not limited to malpractice, false arrest, detention or imprisonment, malicious prosecution, libel, slander, defamation of character, invasion of privacy, wrongful eviction or wrongful entry.

“Coverage D—Errors or Omissions Liability

“To pay on behalf of the insured all sums which the insured shall become legally obligated to pay, insofar as such coverage is not afforded under Coverages A or C, on account of any claim for breach of duty made against the insured by reason of any negligent act, error or omission of the insured if such negligent act, error or omission is committed during the policy period and discovered during the policy period or within twenty-four months after termination of the policy.