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The California Court of Appeal has held that a D&O insurer properly rescinded a policy based on the insured’s material misrepresentation in the application.  (TIG Insurance Company of Michigan v. Homestore, Inc. (2006) 137 Cal.App.4th 749) Facts Homestore, Inc. (Homestore) … Read More

The California Court of Appeal has held that, under a claims-made policy, a claim is “first brought” at the place the insured receives a third party’s demand letter. (National Cas. Co. v. Sovereign Gen. Ins. Svcs. (2006) 40 Cal.Rptr.3d 591) … Read More

The California Court of Appeal has held that an insured seeking recovery for breach of contract and bad faith cannot file separate suits against the insurer, and must assert all theories of recovery in a single action.  (Lincoln Property Company, … Read More

The California Court of Appeal has held that a D&O insurer had no duty to defend a homeowner’s association for alleged breach of contractual obligations under a construction contract.  (Oak Park Calabasas Condominium Association v. State Farm Fire & Casualty … Read More

The California Court of Appeal has held that an employment practices liability exclusion in a CGL policy did not apply where a subcontractor’s employees sued the insured for a wrongful employment practices and false imprisonment. (North American Bldg. Maintenance, Inc. … Read More

The California Court of Appeal has held that a first-party insurer can have no liability for the negligent investigation of a first-party property claim where the policy did not cover the cause of the damage.  (Benavides v. State Farm General … Read More

The California Court of Appeal has held that a contractual indemnity clause required a subcontractor to “defend” a developer against claims involving the subcontractor’s work, even though the subcontractor was later found not negligent and thus had no duty to … Read More

The California Court of Appeal has ruled that where an insured reports a claim, withdraws it and then resubmits it years later, the insured is not entitled to further pursue the claim, since the insurer was able to demonstrate the … Read More

The California Court of Appeal has held a policy covered expenses an insured incurred in recovering an aircraft that law enforcement officials seized due to suspicion the plane was being used for criminal activity.  (American Alternative Ins. Corp. v. Superior … Read More

The California Court of Appeal has reversed a summary judgment in favor of an insurer, holding that there were factual issues as to whether the insurer unreasonably handled the insured’s claim for underinsured motorist benefits.  (Wilson v. 21st Century Insurance … Read More

In a rather unusual case, the California Court of Appeal has held that a surplus lines broker who failed to obtain adequate coverage for an insured can owe a duty of care to a third party who was unable to … Read More

The California Court of Appeal has upheld a homeowners policy exclusion which barred coverage for bodily injury or property damage arising out of the insured’s sale or transfer of real property.  (Davis v. Farmers Insurance Group (2005) 134 Cal.App.4th 100) … Read More

The Ninth Circuit Court of Appeals has held that an insured’s alleged solicitation of a competitor’s customers is not “advertising” and does not trigger a duty to defend under a CGL policy’s “advertising injury” coverage.  (Hayward v. Centennial Insurance Company … Read More

The California Court of Appeal recently affirmed a trial court’s ruling that multiple pollution-related activities did not fall within the terms of various CGL insuring agreements. (Lockheed Corporation v. Continental Insurance Company (2005) 134 Cal.App.4th 187) Facts The EPA and … Read More

The California Court of Appeal has ruled that an insured’s allegation that it relied on its insurer’s investigation of damage was sufficient to establish a basis for equitable estoppel to bar a limitations defense. (Doheny Park Terrace Homeowners Association, Inc. … Read More

The California Court of Appeal has held that the statute of limitations on an insured’s suit for breach of the duty to defend is equitably tolled until the underlying action is resolved by final judgment.  ( Eaton Hydraulics, Inc. v. … Read More

California Governor Arnold Schwarzenegger has recently signed legislation which prohibits builders from enforcing “Type I” indemnity provisions against subcontractors in connection with residential construction defect claims. Background For many years, California has allowed construction contracts to contain “Type I” indemnity … Read More

The California Supreme Court has ruled that when a CGL insurer properly reserves its rights to recoup defense costs from its insured, the insurer can obtain full reimbursement of those defense costs if the insurer ultimately establishes that the policy … Read More

The California Court of Appeal has ruled that a building under renovation is not “under construction,” and that damage that occurs while the building is vacant does not fall within an exception to a vacancy exclusion. ( TRB Investments, Inc. … Read More