Insurance dispute arises between employer’s two insurers after lawsuit settles

The case of California Capital Insurance Company v. Employers Compensation Insurance Company arose from a 2013 motor vehicle accident where the passenger suffered traumatic brain injuries. The passenger and the driver were employees of the La Sirena Grill.

On the day of the accident, both employees spent their work days at La Sirena in South Laguna, had drinks together there, and left at about 10 p.m. to attend a party. The intoxicated driver, who worked as a cook for La Sirena, hit a tree in Laguna Niguel shortly before midnight. Both employees had been off the clock for several hours by that time.

Read more: Injured party sues employer after employee falls asleep at the wheel

The injured passenger filed a lawsuit alleging negligence on the part of La Sirena and the driver. He made the following claims:

• Drinking on the job was common at La Sirena
• That night, La Sirena provided the alcohol that got the driver drunk on the job
• La Sirena’s management knew about the driver’s intoxicated state but did not prevent him from driving
• The driver was acting within the course and scope of his employment when the accident occurred
• The driver was using a vehicle that La Sirena entrusted to him for performing his job duties

La Sirena had insurance policies with two different insurers. The California Capital Insurance Company – the respondent in this case – issued a commercial general liability policy. The...

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