Intel Corporation, Below-Appellant v. American Guarantee & Liability Insurance Co., Below-Appellee, and Lumbermens…

Summary

The Court affirmed summary judgment declaring that the excess policy did not require coverage for Intel’s defense costs because the underlying limits had not been exhausted through qualifying payments. Under the policy’s plain language, payments of judgments or settlements did not include Intel’s out-of-pocket defense expenses, and the policy provisions could be reconciled by treating one provision as governing indemnity and another as limiting the duty to defend. The Court also rejected Intel’s request to introduce extrinsic evidence on remand and declined to certify the issue to the California Supreme Court.