Royal Indemnity v. Baxter International
Plaintiff issued an umbrella insurance policy to North American Vaccine, Inc. ("NAVA") that provided both excess coverage and contingent primary coverage. Defendant is successor in interest to NAVA, and has been named as a defendant in pending third-party lawsuits alleging that a vaccine produced by NAVA causes autism and neurological disorders in children. Baxter tendered its defense against these claims to Plaintiff. Plaintiff accepted, subject to a reservation of rights, and later instituted the present action seeking declaratory relief and reformation of its policy. Plaintiff sought a declaration that it had no duty to defend and indemnify Defendant. In the alternative, Royal sought reformation of the policy to reflect the purportedly "true" insuring agreement so as to exclude coverage for the claims.
Plaintiff and Baxter filed cross motions for summary judgment. Plaintiff contended that Endorsement No. 3 of its policy excluded coverage, or should be reformed to do so. Baxter contended that the insuring agreement of the policy provided contingent primary coverage that covered the claims. The trial court granted Baxter's motion for summary judgment, and denied Royal's.
In this appeal by Plaintiff, court affirm.
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