California Supreme Court Watch

Set forth below is list of some significant property and casualty insurance cases currently pending in the California Supreme Court, along with a summary of the primary issue(s) to be decided in each case. As the Supreme Court decides these cases in upcoming months, we will keep our readers informed.

Wilson v. 21st Century Ins. Co. (case no. S141790) – The primary issue in this case is: Does an insurer act in bad faith if it resolves an underinsured motorist bodily injury claim on the basis of the insured’s medical records without consulting the insured’s treating physician or having the insured examined by a doctor of the insurer’s own choice?

Bouton v. USAA Casualty Ins. Co. (case no. S149851) – This case presents the following issue: Does the arbitrator or the court decide whether a claimant is an insured under an underinsured motorist insurance policy when both the policy and Insurance Code section 11580.2 require arbitration of (a) whether the insured is entitled to collect damages from the driver of the underinsured vehicle and (b) if so, the amount?

State of California v. Underwriters at Lloyds London (case no. S149988) – This case includes the following issues: (1) Does application of the pollution exclusion clause in a liability policy turn on when waste material was discharged from a waste disposal site or when the waste was initially deposited into the site? (2) If pollution is caused by both uncovered intentional actions and covered accidents, does the insured have the burden at trial to prove that all of the damages it seeks to recover were caused by a covered event, or is there a duty to indemnify when two concurrent causes are responsible for an injury even if one of the causes is an uncovered act?