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San Diego, County of v. Ace Property & Cas. Ins. Co.

Citation: 35 ELR 20177
No. No. S114778, (Cal., 08/29/2005)

The court holds that an insurance company need not indemnify a county for expenses it incurred in responding to an administrative agency order requiring it to remediate environmental contamination at a county landfill. The nonstandard, excess third-party liability policy at issue obligates the insurer to indemnify the county for all sums the insured becomes obligated to pay by reason of liability imposed by law for "damages" resulting from the destruction or loss of use of tangible property. The term "damages" limits the indemnification obligation to court-ordered money judgments, and administratively imposed expenses do not constitute "money ordered by a court."