The following cases are currently under review by the California Supreme Court: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?
Zhang v. Superior Court (Case No. S178542) – (1) Can an insured bring a cause of action against its insurer under the unfair competition law (Bus. & Prof. Code 17200) based on allegations that the insurer misrepresents and falsely advertises that it will promptly and properly pay covered claims when it has no intention of doing so? (2) Does Moradi-Shalal v. Fireman’s Fund Ins. Companies (1988) 46 Cal.3d 287 bar such an action?