California’s “Notice-Prejudice” Rule is Fundamental Public Policy for Choice of Law Analysis, and Rule Applies to Consent Provisions in First-Party Policies But Not Third-Party Policies

California’s common law “notice-prejudice” rule is a fundamental public policy for purposes of choice of law analysis, and the rule applies to consent provisions in first-party insurance policies but not to consent provisions in third-party policies. (Pitzer College v. Indian … Read More

Where Insureds Mistakenly Provide Tax Returns to Insurer’s Attorney, and Attorney Then Discloses Returns to Insurer and Accountants, Attorney Can Be Held Liable for “Invasion of Privacy,” But Not “Elder Abuse”

Where the insureds mistakenly provided their tax returns to the insurer’s attorney during investigation of a first-party claim, and the attorney then disclosed the returns to the insurer and its accountants, the attorney could be held liable for “invasion of … Read More

Under “Fraudulent Conveyance” Statute, Third-Party Claimant Can Challenge Insured’s Release of Bad Faith Claim Against Insurer That Allegedly Breached Duty to Settle

Under California’s Uniform Voidable Transactions Act, a third-party claimant could challenge an insured’s release of a bad faith claim against an insurer after the insurer allegedly failed to accept a reasonable settlement demand within policy limits. (Potter v. Alliance United Insurance … Read More

Despite Statute Prohibiting Public Entities from Seeking Indemnity from Employees, Public Entity’s Insurer Is Entitled to Recover from Employees’ Insurer

Despite California Government Code section 825.4, which generally prohibits public entities from seeking indemnity from employees, a public entity’s liability insurer was entitled to recover from its employees’ liability insurer. (Westport Ins. Corp. v. California Cas. Mgmt. Co. (9th Cir. 2019) 916 … Read More

Higher-Layer Excess Policies Do Not Incorporate Lower-Layer Umbrella Policies’ Self-Insured Retentions, and Cover Defense Costs Without Regard to Outcome of Case

An insured’s higher-layer excess policies did not incorporate lower-layer umbrella policies’ self-insured retentions, and did cover defense costs without regard to the outcome of the case. (Deere & Company v. Allstate Ins. Co. (2019) 32 Cal.App.5th 1230) Facts Deere & Company is … Read More

After Developer Obtains Default Judgment Against Subcontractor, Developer’s Excess Liability Insurer Prevails in Judgment Creditor Action Against Subcontractor’s General Liability Insurer

After a developer obtained an approximately $1.5 million default judgment against a subcontractor, the developer’s excess liability insurer prevailed in a judgment creditor action against the subcontractor’s general liability insurer. (Insurance Company of the State of Pennsylvania v. American Safety Indemnity … Read More

“Impaired Property” Exclusion Relieves Insurer of Duty to Defend Insured Contractor Against Suit Alleging That Insured’s Negligent Work Resulted in Loss of Use of Claimant’s Property

A general liability policy’s “impaired property” exclusion relieved an insurer of any duty to defend an insured against a suit alleging that the insured had negligently installed electrical equipment which caused a loss of use of the claimant’s property. (All Green … Read More

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