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PADILLA CONST. v. TRANSPORTATION INS. CO.

No. G036451.

58 Cal.Rptr.3d 807 (2007)

150 Cal.App.4th 984

PADILLA CONSTRUCTION COMPANY, INC., Plaintiff and Appellant, v. TRANSPORTATION INSURANCE COMPANY, Defendant and Respondent.

Court of Appeal of California, Fourth District, Division Three.

May 14, 2007.

Attorney(s) appearing for the Case

Kolod Wagner Law Offices, Scott M. Kolod, and Jerome A. Wagner, Sherman Oaks, and Lee I. Jurewitz, for Plaintiff and Appellant.

Berger Kahn, Ross C. Smith and David B. Ezra, Irvine, for Defendant and Respondent.

OPINION

SILLS, P.J.

I. BACKGROUND

California's rule of "horizontal exhaustion" in liability insurance law requires all primary insurance to be exhausted before an excess insurer must "drop down" to defend an insured, including in cases of continuing loss. (Community Redevelopment Agency v. Aetna Casualty & Surety Co. (1996) 50 Cal.App.4th 329, 339, 57 Cal.Rptr.2d 755.1<...

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