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Otay Land Co. v. Royal Indem. Co.

ELR Citation: 38 ELR 20299
Nos. No. D05 2057, (Cal. App. 4th Dist., 11/25/2008)

A California appellate court held that the owner of a contaminated site may not intervene in an action between the prior owner and its insurer over coverage for the contamination. California law generally prohibits third parties from suing an insurer when they are not in contractual privity, and the parties here are not in such privity. Further, none of the exceptions to that rule apply. The current owner does not have a judgment against the insured, the insurer has not sued the owner in a declaratory action, and the insured has not assigned its rights under the policy to the owner.