Survivors of a young woman who died as a result of being provided with illegal drugs in the home of a friend brought a wrongful death action against the friend. The friend's homeowners insurer brought an action for declaratory relief, with respect to coverage for the lawsuit, under its homeowners policy. The man and woman were close personal friends for over twenty years. He was familiar with and had used a drug that he believed was beneficial with respect to certain psychological and emotional problems. She informed him that she wanted to use it, after lengthy discussions, as an aid in coping with recent problems and changes in her life. He gave her less than half of the dose that he usually gave himself while they were at his home. She died shortly afterward.

The court found that the drug involved was a "Schedule I" controlled substance under federal law, a grouping of the most dangerous of illegal drugs. (The Controlled Substance Act makes it illegal to dispense, among other activities, any controlled substance.) The court held that insurance coverage for the act of providing an illegal drug to another in the insured's home is precluded as against public policy and by provisions of California Civil Code 1688."

Section 1688 of the Code provides as follows: "All contracts which may have as their object, directly or indirectly, to exempt anyone from the responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent are against the policy of the law." This, the court reasoned, underscored the intent of the state "to prohibit insurance coverage for . . . . illegal acts."

The court concluded that the act of giving a Schedule I controlled substance to another person in the home of the insured was "so extreme" that insurance could not be provided for it under California law. Summary judgment was granted in favor of the insurance company.

(STATE FARM FIRE AND CASUALTY CO., Plaintiff v. BAER ET AL., Defendants. U.S. District Court for the Northern District of CA. No. C 89-3775 FMS. Sept. 11, 1990. CCH 1990 Fire & Casualty Cases, Paragraph 2734.)