Does the limiting phrase 'which he shall have become liable to pay' apply strictly to 'expenses' to the exclusion of 'liabilities' as the respondent argues?

California, United States of America


The following excerpt is from Orion Ins. Co. v. Firemen's Ins. Co., 120 Cal.Rptr. 222, 46 Cal.App.3d 374 (Cal. App. 1975):

The question to be answered, then, is whether the limiting phrase 'which he shall have become liable to pay and shall have in fact paid' applies strictly to 'expenses' to the exclusion of 'liabilities' as the respondent argues, or whether the phrase is to be applied to the two words conjunctively as appellant argues. Both appellant and respondent have supplied detailed briefs as to the manner in which insurance policies should generally, be construed, but neither side has cited a case which construes the exact language of this policy. Our research has revealed, however, the case of Saunders v. Austin W. Fishing Corp., 352 Mass. 169, 224 N.E.2d 215 (1967), which is in point.

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