Case Alert: Appellate Court Stacks Policies in $700,000,000 Continuing Damage Claim


State of California v. Continental Insurance Company, et al (January 2009) 169 Cal.App.4th 1114

This is an extremely important case decided by the California Fourth Appellate District wherein the court holds that where there is bodily harm or property damage that is continuous through a number of insurance policy periods that any single policy can become liable for the entire sum of damages restricted only by the insurance limits of each individual policy. Furthermore, the court ruled that the policies and their limits could be “stacked” with the result that they become cumulative or, in essence, a stack of coverage.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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