A lawsuit by the federal government against an insured for violation of the Fair Housing Act was not potentially covered under commercial general liability policies insuring against “wrongful eviction, wrongful entry and invasion of right of private occupancy,” but was … Read More

California Insurance Code section 520 does not invalidate a “consent-to-assignment” clause contained within a commercial general liability policy. ( Fluor Corporation v. Superior Court (2012) — Cal.App.4th –, WL 3741979) Facts In 1924, the original Fluor Corporation (“Fluor-1”) was created. … Read More

For purposes of federal diversity jurisdiction, an independent adjuster was not a “sham” defendant where the insureds alleged that the adjuster negligently supervised and controlled emergency repairs, causing additional damage to the insureds’ property. ( Huber v. Tower Group, Inc. … Read More

An insurer on the risk at any time when covered damage occurred was obligated to indemnify the insured for “all sums” the insured owed up to the policy limits, and the insured was entitled to “stack” the limits of all … Read More

A general liability policy covering the personal injury offense of “disparagement” required an insurer to defend an insured against a suit alleging that the insured improperly sold the claimant’s products at severely discounted, “close-out” prices, thus diminishing the claimant’s brand … Read More

A general liability insurer was entitled to reimbursement from an insured of sums the insurer paid in settlement of the insured’s alleged liability in an underlying “slumlord” suit. ( Axis Surplus Insurance Company v. Reinoso (2012) WL 2389324) Facts Edgar … Read More

After an insured’s liability has become reasonably clear, an insurer has a duty to attempt to effectuate settlement on behalf of the insured, even in the absence of a settlement demand from the claimant. ( Du v. Allstate Ins. Co. … Read More

In an equitable contribution action, an insurer was only required to show a “potential” for coverage under a co-insurer’s insurer’s policy which had a self-insured retention that the insured paid as part of an underlying settlement. ( Axis Surplus Ins. … Read More

In the absence of actual coverage, a liability insurer cannot be liable to an insured for failing to accept a third-party claimant’s reasonable settlement offer within the policy limits. ( DeWitt v. Monterey Insurance Company (2012) 204 Cal.App.4th 233) Facts … Read More

A commercial excess liability policy did not cover an insured’s alleged liability for an injury which occurred before the policy was issued .(Wallman v. Suddock ( 2011) 200 Cal.App.4th 1288.) Facts In 1994, Barry Wallman and other members of his … Read More