Archive for January, 2010

Completed Operations and Premises Liability Coverages Held To Be Not Overlapping

In the unpublished case of U. S. Specialty Insurance Company v. Superior Court (Chino Valley Aviation, Inc., et al), No. E048640 (January 29), Division Two of the Fourth Appellate District issued a writ of mandate directing the trial court to grant summary judgment to U. S. Specialty on its contention that its policy provided Chino [...]

January 29, 2010   Posted in: Blog  Comments Closed

Commissioner Touts Increase In Low Cost Automobile Insurance Applications

Commissioner Poizner has announced that the Low Cost Automobile Insurance Program saw an 18.9 percent increase in use in 2009 compared with the year before.  He credited an “aggressive outreach program” and the faltering economy for the jump.  However, the program is still very small.  Approximately 7,500 applications were approved in 2009 compared to 6,306 [...]

January 29, 2010   Posted in: Blog  Comments Closed

Third Appellate District Holds That CIGA-Fireman’s Fund Stipulation Should Not Be Set Aside Despite Intervening Law

In Fireman’s Fund Insurance Company v. Workers’ Compensation Appeals Board (WCAB), California Insurance Guarantee Association (CIGA), et al, No. C062019 (January 29), the Third Appellate District ruled that a stipulation, entered into in 2001, that resolved an unsettled legal issue between Fireman’s Fund and CIGA should not be set aside seven years later after the [...]

January 29, 2010   Posted in: Blog  Comments Closed

New York Nears Finalization of Producer Compensation Disclosure Regime

New York Insurance Superintendent James J. Wrynn said yesterday proposed regulations governing producer compensation disclosure will be modified to make it simpler for producers to fulfill requirements.  Producers will still have to disclose their roles, but will not have to give extensive detail unless the consumer asks for further information.  No disclosure will be required [...]

January 29, 2010   Posted in: Blog  Comments Closed

Failure To Submit To EUO Need Not Be Willful In Order To Bar Claim

In Century-National Insurance Company v. Superior Court (Benjamin), No. E049497 (January 28), an unpublished opinion from Division Two of the Fourth Appellate District, the Court of Appeal issued a Palma writ on a trial court decision granting summary adjudication on an insured’s bad faith claim, but denying it on a breach of contract cause of [...]

January 28, 2010   Posted in: Blog  Comments Closed

Indemnification Summary Judgment Reversed Where No Showing Insurer Actually Insured Responsible Parties

American International Underwriters Insurance Company v. American Guarantee and Liability Insurance Company, No. H033195 (January 28), is an opinion from the Sixth Appellate District dealing with cross-indemnification claims between two insurers.  American Guarantee and AIU sought indemnification from each other after settling a personal injury action.  Each moved for summary judgment.  The trial court denied [...]

January 28, 2010   Posted in: Blog  Comments Closed

PreNotice Public Discussion Scheduled For Regulations Governing Standards And Training For Estimating Replacement Value

The Commissioner has scheduled a prenotice public discussion for new regulations governing standards and training for estimating replacement value on homeowners’ insurance.  The proposal includes mandatory agent-broker curriculum with respect to different coverage options, different structures and buildings, fire issues, and record-keeping requirements.  The public discussion will take place on February 11 in Los Angeles.

January 27, 2010   Posted in: Blog  Comments Closed

State Farm Policies Do Not Cover Junk Fax Prevention Act Claim

State Farm General Insurance Company v. JT’s Frames, Inc., No. B215457 (January 27), is a decision from Division Four of the Second Appellate District  arising out of an Illinois lawsuit.  In that Illinois action, JT’s obtained a settlement on behalf of itself and a class of similarly situated entities based on the defendant’s transmission of [...]

January 27, 2010   Posted in: Blog  Comments Closed

Demurrer To Mental Health Parity UCL Claim Overruled Where Plaintiff May Be Able To Establish Commonality and Neither Individual Medical Determinations Nor Complex Economic Policy Issues Need Be Decided

Arce, et al v. Kaiser Foundation Health Plan, Inc., et al, No. B215861 (January 27), is a decision from Division Seven of the Second Appellate District overruling a trial court’s dismissal of a California Mental Health Parity Act claim brought as a class action under the UCL.  The Act mandates that every health care service [...]

January 27, 2010   Posted in: Blog  Comments Closed

Building An Encroaching Structure Held Not To Be A Covered Accident

In Fire Insurance Exchange v. Superior Court (Bourguignon), No. E046531 (January 26), Division Two of the Fourth Appellate District was called upon to review, on a petition for writ of mandate, an insurer’s contention that building a structure that encroaches onto another’s property is not an accident — even when the owners acted under the [...]

January 26, 2010   Posted in: Blog  Comments Closed

Both Attorney And Client Must Have Intended Party To Be Beneficiary of Legal Services In Order To Establish Duty Of Care Under An Intended Beneficiary Theory

Great American Insurance Company v. North American Capacity Insurance Company, No. E047908 (January 25), is an unpublished opinion from Division Two of the Fourth Appellate District dealing with a complex attorney-client relationship issue.  Chritton, and his law firm, Archer Norris, represent Great American.  Yaekel represents North American.  Yaekel also represents North American’s sister company, North [...]

January 25, 2010   Posted in: Blog  Comments Closed

Bystander Claim Depends On Simultaneous Awareness That Family Member Has Been Injured

Angle v. Barnett, No. B215572 (January 25), is an unpublished decision from Division Six of the Second Appellate District affirming a summary adjudication of a cause of action for negligent infliction of emotional distress.  The appellate court affirmed because plaintiff could not establish that he was both present at the scene of the injury-producing event [...]

January 25, 2010   Posted in: Blog  Comments Closed

CCR Section 2695.4 (a) Requires An Insurer To Notify Its Insured of Contractual Limitations Periods, Regardless of Whether The Insured Is Represented By Counsel, But That By Itself Does Not Set Up An Equitable Estoppel

Superior Dispatch, Inc. v. Insurance Corporation of New York (Inscorp), No. B204878 (January 21) is a decision from Division Three of the Second Appellate District affirming a summary judgment granted Inscorp on the basis of a one-year contractual limitations provision in the policy.  However, the appellate court affirmed the summary judgment on very different grounds.  [...]

January 21, 2010   Posted in: Blog  Comments Closed

Where Undisputed Evidence Showed Insurer Did Not Waive Its Right To Jury For Claims Exceeding $500,000, Confirmation of Arbitration Award Improper

Mnatsakanyan, et al v. CalFarm Insurance Company, No. B212159 (January 21) is an unpublished decision from Division Four of the Second Appellate District dealing with these facts:  Plaintiffs below sued CalFarm alleging that CalFarm had issued a “Businessowners Portfolio Policy” covering lost income from business property.  CalFarm then allegedly wrongly denied a claim for lost [...]

January 21, 2010   Posted in: Blog  Comments Closed

Second Appellate District Upholds Advertising Injury Nonconformity Exclusion

In Total Call International, et al v. Peerless Insurance Company, et al, No. B212923 (January 21), Division Four of the Second Appellate District upheld a trial court decision that an insurer had correctly declined to defend Total Call in a suit based on Total Call’s advertising.  In the underlying lawsuit, two competitors claimed that Total [...]

January 21, 2010   Posted in: Blog  Comments Closed

Second Appellate District Reverses Pre-Delgado Defense Duty Holding After Finding Assault Could Not Be Construed As An Accident

Last year the Supreme Court handed down its landmark decision in Delgado v. Interinsurance Exchange of Automobile Club of Southern California (2009) 47 Cal. 4th 302.   That case held that an insured’s assault based on the unreasonable belief in having to defend himself did not give rise to a defense duty.  See our August 3 [...]

January 19, 2010   Posted in: Blog  Comments Closed

Second Appellate District Issues Strong Pro-Insurer Rescission Decision

In Nieto v. Blue Shield of California Life & Health Insurance Company, No. B214669 (January 19), Julie Nieto  failed to disclose information about her medical condition and treatment on a health insurance application she submitted to Blue Shield.  Contrary to her application, she had had extensive treatment for back and hip pain and had received [...]

January 19, 2010   Posted in: Blog  Comments Closed

Denial of Motion To Extend Period To Vacate Bail Bond Forfeiture Upheld

In the unpublished case of The People v. Fairmont Specialty Group, No. B209635 (January 15), Division Five of the Second Appellate District upheld a trial court decision denying a Penal Code Section 1305.4 motion to extend the 180-day period to vacate a bail bond forfeiture and exonerate the bond.  The surety’s appeal was based on [...]

January 15, 2010   Posted in: Blog  Comments Closed

Bail Bond Forfeiture Upheld Despite Change In Criminal Complaint

The People v. Bankers Insurance Company, No. F056891 (January 14), is a decision from the Fifth Appellate District revolving around the issue of the impact of a change in a criminal complaint on a surety’s obligation under a bail bond.  A defendant charged with violations of Health & Safety Code Sections 11378 and 11379 was [...]

January 14, 2010   Posted in: Blog  Comments Closed

Failure To Provide Adequate Record Warrants Dismissal Of Appeal

In the unpublished case of Tesfagiorgis v. State Farm Mutual Automobile Insurance Company, No. A123833 (January 12), Division Five of the First Appellate District dismissed a plaintiff’s appeal of an arbitration award confirmation order on the basis that an adequate record permitting review had not been submitted.  The Court refused to excuse the plaintiff’s status [...]

January 12, 2010   Posted in: Blog  Comments Closed

Petition For Rehearing Denied in Blue Cross v. Superior Court; Holding On Lack Of Exclusive Jurisdiction Strengthened

On December 15, Division One of the Second Appellate District handed down its opinion in Blue Cross of California, Inc. v. Superior Court (The People), No. B215035 (December 15).  The Court held that the Los Angeles City Attorney has the authority to pursue UCL and false advertising claims against Blue Cross based on violations of [...]

January 12, 2010   Posted in: Blog  Comments Closed

Requirement That Subcontractors Pay Self-Insured Retention Held Unambiguous And Supported Contractual Intent

In the case of Forecast Homes, Inc., et al v. Steadfast Insurance Company, No. G040876 (January 12; ordered published February 11), Division Three of the Fourth Appellate District reviewed a judgment entered against Forecast in a declaratory relief action against Steadfast.  Forecast contractually required all of its subcontractors to defend and hold it harmless against [...]

January 12, 2010   Posted in: Blog  Comments Closed

Auto Repairer’s Suit Challenging Direct Automobile Repair Programs Held Properly Dismissed

In the unpublished case of Webster v. Allstate Insurance Company and Progressive Casualty Insurance Company, No. B211390 (January 11), Division Three of the Second Appellate District upheld the trial court’s dismissal of a suit by an auto body repair shop owner, on behalf of himself and a putative class of other owners, challenging Allstate’s and [...]

January 11, 2010   Posted in: Blog  Comments Closed

Insurer’s Claims of Settlement Agreement Breach and Fraud Do Not Give Rise to Anti-SLAPP Motion

In the unpublished case of Certain Underwriters at Lloyd’s v. E*Trade Group, No. A125073 (January 11), Division Five of the First Appellate District was called upon to review this factual scenario: E*Trade sued its insurer to determine coverage obligations for underlying commercial litigation in which E*Trade was a party.  The coverage litigation was resolved by [...]

January 11, 2010   Posted in: Blog  Comments Closed

Equitable Subrogation Judgment Affirmed By Fourth Appellate District

In the unpublished case of American Casualty Company of Reading, Pennsylvania v. Children’s Hospital Insurance Limited, et al, No. D054552 (January 11), Division One of the Fourth Appellate District upheld a summary judgment granted American Casualty against Children’s Hospital Insurance Limited and Rady Children’s Hospital.  The case arose out of an alleged sexual molestation by [...]

January 11, 2010   Posted in: Blog  Comments Closed