Archive for March, 2010

First Appellate District Determines Financial Indemnity Drop-Down Permissive User Provision Sufficiently Conspicuous And Enforceable

In Dominguez v. Financial Indemnity Company, No. A125133 (March 30), Division Five of the First Appellate District was faced with a challenge to the enforceability of Financial Indemnity’s drop-down — called “step-down” in the decision — automobile liability insurance limits in the case of a permissive user of the insured automobile.  Dominguez was injured in [...]

March 30, 2010   Posted in: Blog  Comments Closed

Hirer of Injured Worker’s Employer May Be Liable For Injuries Suffered

In Seabright Insurance Company v. U.S. Airways, Inc. (Verdon Lujan, Intervener), No. A123726 (March 29),  Division Four of the First Appellate District was faced with a summary judgment granted by the trial court in favor of U.S. Airways in a personal injury action.  Seabright brought the action as subrogor against the City and Country of [...]

March 29, 2010   Posted in: Blog  Comments Closed

Providing Defense Under Auto Policy Does Not Justify Not Providing Defense Under HO Policy

In Risely v. Interinsurance Exchange of the Automobile Club, No. D054866 (March 26), an Interinsurance Exchange insured was faced with a false imprisonment claim.  The Exchange declined to defend the claim under its insured’s $300,000 homeowners’ coverage.  It did, however, defend the claim under the same insured’s separate $50,000 automobile policy.  The Exchange rejected an [...]

March 26, 2010   Posted in: Blog  Comments Closed

460 Insurers Agree to Forego Future Investments in Iran-Related Companies

Insurance Commissioner Poizner announced today that 460 insurers have agreed in writing to a moratorium on future investments in 50 companies identified by the Department of Insurance to be doing business with the Iranian energy, nuclear and defense sectors. “This level of participation in the moratorium signals tremendous progress in our initiative to ensure that [...]

March 26, 2010   Posted in: Blog  Comments Closed

Jones-Feuer Health Insurance Premium Rate Regulation Bill Passes Out of Committee

AB 2578 (Jones- Sacramento and Feuer-Los Angeles), which would impose a Proposition 103-style prior approval rate regulation regime on both health care service plans and health insurers, has passed out of the Assembly Health Committee.  Heavily supported by Harvey Rosenfield and ConsumerWatchdog, the legislation aims at filling what Rosenfield regards as a hole in recently [...]

March 26, 2010   Posted in: Blog  Comments Closed

De La Torre Health Care Rescission Bill Resurfaces

AB 2470 (De La Torre-D-South Gate) has passed the Assembly Health Committee.  Like its predecessors,  AB 1945 and AB 2, which were vetoed, respectively, in 2008 and 2009, this legislation would create an independent review panel to review decisions by health care plans to rescind individual health care contracts.  The legislation would mandate an “intentionally [...]

March 26, 2010   Posted in: Blog  Comments Closed

Surety Failed To Establish Defendant Was In Custody In Country of Georgia Or That District Attorney Had Elected Not To Seek Extradition

In the unpublished case of County of Los Angeles v. Indiana Lumbermens Mutual Insurance Company, No. B212669 (March 25), Division One of the Second Appellate District affirmed the denial of Lumbermens’ motion to vacate forfeiture on a bail bond and the summary judgment entered on that forfeiture in favor of the County.  The Court found [...]

March 25, 2010   Posted in: Blog  Comments Closed

Insurance Broker Malpractice Action Barred By Two-Year Statute Of Limitations

In the unpublished case of FremantleMedia North America, Inc. v. Hilb, Rogal & Hobbs, No. B211270 (March 25), Division Five of the Second Appellate District affirmed a trial court decision dismissing Fremantle’s broker malpractice action against Hilb on the basis of the two-year statute of limitations.  Fremantle alleged it had retained Hilb to obtain a [...]

March 25, 2010   Posted in: Blog  Comments Closed

Montrose I Requires Stay Of Declaratory Relief Action Regarding Environmental Coverage Claim

In the case of United Enterprise, Inc., et al v. Superior Court (Royal Indemnity Company), No. D055879 (March 24; ordered published April 9), Division One of the Fourth Appellate District issued a writ of mandate after a trial court had denied a motion to stay a coverage action.  United was sued in both federal and [...]

March 24, 2010   Posted in: Blog  Comments Closed

Insurer May Not Short-Circuit Bad Faith Claim By Initiating Fee Dispute Arbitration

Intergulf Development v. Superior Court (Interstate Fire & Casualty Company), No. D055459 (March 24), is an opinion from Division One of the Fourth Appellate District presenting the question whether an insurer is entitled to binding arbitration of an alleged fee dispute (pursuant to Civil Code Section 2860 (c) ) in an action by an insured [...]

March 24, 2010   Posted in: Blog  Comments Closed

Blue Shield Summary Judgment In Misrepresentation Case Reversed By Second Appellate District

In Nazaretyan, et al, v. California Physicians’  Service, No. B213664 (March 23), Division One of the Second Appellate District reversed a summary judgment granted Blue Shield after it rescinded plaintiffs’ coverage under Blue Shield’s health care service plan.  The case is significant because it is the first published opinion to evaluate the rulings in both [...]

March 23, 2010   Posted in: Blog  Comments Closed

3.8/1 Punitive/Compensatory Damages Ratio Deemed Appropriate To Punish “Despicable” Conduct By Insurer

In Amerigraphics, Inc. v. Mercury Casualty Company, No. B208654 (March 23), Division Two of the Second Appellate District considered an insurance bad faith case in which Mercury, after Amerigraphics’ business premises were flooded, denied full coverage under the applicable policy.  The case concerns both a policy interpretation issue and a punitive damages issue.  The policy [...]

March 23, 2010   Posted in: Blog  Comments Closed

Insurer Providing Defense May Intervene In Underlying Action When Insured Reaches A Private Settlement Without Insurer’s Participation

Gray v. Begley (Continental Casualty Company, et al, Interveners), No. B212082 (March 22), is a significant opinion dealing with the rights of an insurer, defending under a reservation of rights, when its insured enters into a private settlement with the third-party claimant without the insurer’s participation.  Gray was injured in an automobile accident.  The other [...]

March 22, 2010   Posted in: Blog  Comments Closed

U.S. Chamber Ranks California’s Lawsuit Climate 46th In Nation

According to a survey of general counsels and senior attorneys of companies with revenues of at least $100 million conducted by the U.S. Chamber of Commerce Institute For Legal Reform, California’s lawsuit climate is among the worst in the nation and on a par with those of Alabama, Louisiana, and West Virginia.  Los Angeles’ courts [...]

March 22, 2010   Posted in: Blog  Comments Closed

SCIF Assignee’s Judgment Reversed Where Evidence Insufficient to Show the Amount Due

Northern California Collection Service, Inc. v. Salazar, No. F057350 (March 19), is an unpublished decision from the Fifth Appellate District dealing with a collection action by Northern California on behalf of State Compensation Insurance Fund (SCIF).  The dispute arose from three annual audits of Salazar’s records by SCIF.  These audits resulted in statements sent to [...]

March 19, 2010   Posted in: Blog  Comments Closed

Commissioner Schedules Public Hearing On Lowering Low Cost Automobile Insurance Program Rates

The Commissioner will hold a public hearing on May 18 in San Francisco to consider the California Automobile Assigned Risk Plan’s proposal to lower rates for the Low Cost Automobile Insurance Program by an average of 2.4 percent.  The proposal will affect rates for liability and optional UIM and Medical Payment coverages under the program.  [...]

March 19, 2010   Posted in: Blog  Comments Closed

Second Appellate District Finds Judgment In Excess Of $25,000 Not “Unattainable” Where Special Damages Amounted To $8,000

In the unpublished case of Ramos v. Superior Court (Pioneer Theaters), No. B220492 (March 19), Division One of the Second Appellate District overturned a trial court’s decision to reclassify an unlimited personal injury civil action against Pioneer on the basis that it would not “ever result in an unlimited jurisdiction award.”  The parties agreed that [...]

March 19, 2010   Posted in: Blog  Comments Closed

Allstate Scores Peremptory Writ Relief On Peremptory Challenge

In the unpublished case of Allstate Indemnity Company v. Superior Court (Aragon), No. E050053 (March 19), Division Two of the Fourth Appellate District found Allstate’s peremptory challenge to a trial judge in an automobile accident case to be timely. The trial court had rejected the challenge as untimely.  The appellate court, issuing a peremptory writ, [...]

March 19, 2010   Posted in: Blog  Comments Closed

Commissioner Announces Settlements with Advantage Title and Two Title Representatives Over Alleged Illegal Rebating

Commissioner Poizner today announced that he has reached an agreement with an underwritten title company and two of its title marketing representatives to resolve actions taken against each for alleged illegal rebate activities. Advantage Title, Inc., and two of its marketing representatives, Michael Langgle and Mariya Vassileva, allegedly engaged in activities to benefit realtors and [...]

March 19, 2010   Posted in: Blog  Comments Closed

Estoppel Bars Challenge To Summary Judgment on Bond Forfeiture

In The People v. Bankers Insurance Company, No. B213065 (March 16), Division Eight of the Second Appellate District upheld the denial of a motion by Bankers to vacate a judgment ordering the forfeiture of a bail bond.  Bankers asserted that the trial court had no jurisdiction to enter summary judgment against the surety on the [...]

March 16, 2010   Posted in: Blog  Comments Closed

Blue Cross Must Reimburse Patient For Out-of-State Liver Transplant

In a widely watched case, a Los Angeles jury, on a 10-2 vote, ordered Anthem Blue Cross yesterday to reimburse a California insured for the $206,000 cost of an out-of-state liver transplant.  The jury also ordered Blue Cross to pay the plaintiff’s legal fees on the basis of a 9-3 bad faith verdict.  The jury [...]

March 16, 2010   Posted in: Blog  Comments Closed

Insurer Seeking Equitable Contribution From Another Insurer Must First Establish That It Has Paid More Than Its Fair Share

In the partially published case of Scottsdale Insurance Company v. Century Surety Company, No. B204521 (March 10), Division Three of the Second Appellate District considered three different allocation issues.  When multiple insurers share the same defense obligation, the costs of same are to be allocated equally.  Thus, when an insurance company refuses to defend, those [...]

March 10, 2010   Posted in: Blog  Comments Closed

Settlement Negotiations Fall Under Protection Of Anti-SLAPP Statute

Seltzer v.  Barnes, No. A123784 (February 11; ordered published March 9), is a case from Division Five of the First Appellate District upholding the applicability of the anti-SLAPP statute (Code of Civil Procedure Section 425.16) to settlement negotiations.  Barnes appealed from an order in the trial court denying his special motion to strike plaintiff Seltzer’s [...]

March 9, 2010   Posted in: Blog  Comments Closed

Bail Forfeiture Upheld Where Lack of Notice To Surety Resulted From Office Move Not Communicated To Court

In the unpublished case of County of Orange v. Continental Heritage Insurance Company, No. G041767 (March 4), Division Three of the Fourth Appellate District upheld a trial court’s decision to refuse to discharge an order of forfeiture where the surety argued that it did not receive notice of the forfeiture proceedings.  The appellate court agreed [...]

March 4, 2010   Posted in: Blog  Comments Closed

Bond Properly Forfeited Where Extradition From Country Of Georgia Impossible

In the unpublished case of County of Los Angeles v. Indiana Lumbermens Mutual Insurance Company, No. B212756 (March 4), the surety appealed from an order denying its motion to vacate forfeiture and exonerate bail after the failure of a criminal defendant to appear in court.  The surety relied on Penal Code Section 1305 (f), which [...]

March 4, 2010   Posted in: Blog  Comments Closed