By Order dated April 5, 2022, the Northern District of California granted partial summary judgment to insurers National Union Fire Insurance Company of Pittsburgh, PA (National Union) and ACE Property and Casualty Insurance Company (ACE) (together, the Insurers), ruling that the Insurers had no duty to defend the insured, a distributor and seller of prescription drugs, in connection with three opioid-epidemic lawsuits wherein state and local governments sought to recover the increased costs they have incurred responding to the opioid epidemic.
In so holding, Judge Jacqueline Corley held that the insured's over-distribution of opioids led to the foreseeable diversion of prescription painkillers. In turn, the illegitimate use of such painkillers and increased costs incurred by state and local governments in response to the opioid crisis did not arise from an accident or occurrence. Accordingly, National Union and ACE did not have a duty to defend and reimburse the insured for the more than $230 million it incurred to defend against thousands of opioid lawsuits.
Background
The Insurers filed the lawsuit captionedAIU Insurance Co., et al. v. McKesson Corp. against the insured in October 2020. The Insurers sought a declaratory judgment that they were not obligated to defend or...
