California Supreme Court Watch

Set forth below is a list of 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.

Ameron Internat. Corp. v. Insurance Co. of the State of Pennsylvania (case no. S153852) Does a proceeding before the United States Department of the Interior Board of Contract Appeals constitute a “suit” such as to trigger insurance coverage under a commercial general liability policy?

Delgado v. Interinsurance Exchange of the Automobile Club (case no. S155129) When a liability policy covers injury arising from an “occurrence,” which is defined as an “accident,” does the insurer have a duty to defend an action for assault if the complaint alleges the insured was acting under an unreasonable and negligent belief that he was acting in self-defense?

State of California v. Continental Ins . Co . (case no. S170560 ) – (1) When continuous property damage occurs during the periods of several successive liability policies, is each insurer liable for all damage both during and outside its period up to the amount of the insurer’s policy limits? (2) If so, is the “stacking” of limits – i.e., obtaining the limits of successive policies – permitted?

Village Northridge Homeowners Association v. State Farm Fire & Casualty Co. (case no. S161008) – After settling a first-party claim by accepting money from and executing a release of the insurer, may an insured sue the insurer for fraud in inducing the settlement and seek to avoid the release without returning the money the insurer paid?

21st Century Ins. Co. v. Superior Court (case no. S154790) Should an insured’s attorney fees and costs incurred to obtain compensation from a third party tortfeasor be taken into account when applying the rule that an insurer cannot seek reimbursement from the insured unless the insured has been “made whole” by the recovery from the tortfeasor and other sources?