Notable Cases

Stephenson v. Argonaut Insurance Co.

The firm was successful in the published appellate decision in Stephenson v. Argonaut Insurance Co.  125 Cal.App.4th 962 

(Cal. Ct. App., 2004).  The decision held that an insurer that issues a Workers’ Compensation and Employers’ Liability policy 

has no duty to defend an employer against an employee’s tort claim for an injury barred by the exclusive remedy doctrine. 

The Stephenson decision provides an excellent analysis of the application of the Workers’ Compensation Exclusion found in 

the typical Workers’ Compensation and Employers’ Liability policies.  While several published cases have reached substantially similar holdings concerning the meaning and application of the Workers’ Compensation Exclusion – Producers Dairy Delivery

Co. v. Sentry Ins. Co. (1986) 41Cal.3d 903; Culligan v.  State Compensation Ins. Fund (2000) 81 Cal. App. 4th 429;  and Transamerica Ins. Co. v. Superior Court (1994)  29 Cal. App. 4th 1705 – the decision in Stephenson contains the only explanation of how the exclusion applies in dual employment situations.