All-Sums-With-Stacking Rule: Landmark Stringfellow Decision

Description

The California Supreme Court issued its landmark ruling in Calif. v. Continental Ins. Co. (the Stringfellow case) handing a victory to the policyholder, thus ending this appeal in lengthy litigation in connection with a federal court-ordered cleanup of the Stringfellow Acid Pits waste site.

The decision addressed critical coverage issues of allocation of liability, stacking of coverage in policies spanning multiple years, and trigger of coverage. The court applied the continuous injury trigger of coverage principle and endorsed an all-sums-with-stacking rule. It did not address contribution and subrogation issues that will follow from its pro-policyholder approach.

The court did say that insurers could include anti-stacking clauses in future policies and rules to limit indemnity or provide for equitable pro rata coverage allocation in the policies. Many insurers already use clear anti-stacking provisions in their environmental liability policies.

Listen as our panel of litigators, including the state of California's lead trial counsel and amicus counsel for insurer organizations in the Stringfellow case, analyzes the court’s ruling and its precedential impact on coverage for long-tail injury claims, and particularly for environmental cleanup claims. The panel will discuss the impact of the case in California and its persuasive value in other jurisdictions.