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United States District Court for the Northern District of California
April 5, 2022, Decided; April 5, 2022, Filed
Case No. 20-cv-07469-JSC
ORDER RE: CROSS-MOTIONS FOR PARTIAL SUMMARY JUDGMENT
Re: Dkt. Nos. 79, 110, 111, 114, 115, 135
This lawsuit is an insurance coverage dispute between McKesson and three insurers. Before the Court are cross-motions for partial summary judgment on the duty to defend, filed by McKesson and two insurers, National Union Fire Insurance Company of Pittsburgh, PA ("NU") and ACE Property and Casualty Insurance Company ("ACE") [*4] (together, "Insurers"), (Dkt. Nos. 79, 111, 115; see Dkt. Nos. 112, 113, 116, 117, 118, 119, 120, 122, 123, 124, 133, 134, 136, 137); administrative motions to file under seal, (Dkt. Nos. 110, 114); and a motion to strike, (Dkt. No. 135; see Dkt. Nos. 139, 140).1 Having carefully considered the initial and supplementary briefing, and having had the benefit of oral argument on January 27, 2022, the Court GRANTS NU and ACE's motions for partial summary judgment and DENIES McKesson's motion. As explained below, Insurers have established that the two insurance policies at issue have no potential to cover the three underlying suits. While the suits at least potentially seek damages because of bodily injury, they have no potential to allege that an accident produced the injury.
McKesson, a distributor and seller of prescription drugs, held a number of liability insurance policies with Insurers between 1999 and 2017. (Dkt. No. 1 ¶¶ 2, 11-12; Dkt. No. 9 at 2 ¶ 2, 4 ¶ 11-12, 13 ¶ 11, 14 ¶ 12-13; Dkt. No. 45 at 4 ¶ 13.) Two policies are at issue in the cross-motions for partial summary judgment.
I. INSURANCE POLICIES
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
2022 U.S. Dist. LEXIS 64242 *; 2022 WL 1016575
AIU INSURANCE COMPANY, et al., Plaintiffs, v. MCKESSON CORPORATION, Defendant.
Prior History: AIU Ins. Co. v. McKesson Corp., 2021 U.S. Dist. LEXIS 152240, 2021 WL 3565440 (N.D. Cal., Aug. 12, 2021)
opioids, bodily injury, insured, suits, complaints, exemplar, duty to defend, diversion, unexpected, unforeseen happening, deliberate, damages, orders, suspicious, coverage, policies, distributing, occurrence, quantities, allegations, foreseeable, costs, prescription, lawsuits, injuries, cleaned, seal, negligence claim, partial summary judgment, injured person
Insurance Law, Liability & Performance Standards, Good Faith & Fair Dealing, Duty to Defend, Business Insurance, Commercial General Liability Insurance, Indemnification, Motor Vehicle Insurance, Obligations, Obligations of Parties, Insurers, Allegations in Complaints, Property Insurance, Procedure, Evidence & Trial, Burdens of Proof, Policy Interpretation, Ambiguous Terms, Coverage Favored, Claim, Contract & Practice Issues, Ordinary & Usual Meanings, Technical Constructions & Meanings, Plain Language, Governments, Legislation, Interpretation, Civil Procedure, Remedies, Damages, Compensatory Damages, Contracts Law, Contract Interpretation, Intent, Life Insurance, Accidental Death, Accident & Accidental Means Definitions, Coverage, Accidental Injuries, Exclusions, Intentional Acts, Occurrences, Torts, Duty, Affirmative Duty to Act, Creators of Foreseeable Peril, Intentional Torts, Assault & Battery, Defenses, Elements of Assault, Elements of Battery, Standards of Care, Reasonable Care, Reasonable Person, Elements, Foreseeability of Harm, Evidence, Inferences & Presumptions, Inferences, Discovery & Disclosure, Discovery, Protective Orders, Courts, Court Records