Archive for May, 2010

Despite Fact Small Claims Plaintiffs Requested Relief For Emotional Distress, They Sufficiently Stated A Claim For Property Damage To Invoke Insurer’s Obligation

In the unpublished case of Treweek, et al,  v. California Capital Insurance Company, No. B214671 (May 28), Division One of the Second Appellate District upheld a bad faith judgment against an insurer  for failing to indemnify in twelve small claims court cases.  The small claims plaintiffs did not at first allege property damage, only asserting [...]

May 28, 2010   Posted in: Blog  Comments Closed

Pacific Specialty’s Pursuit of Subrogation Action Did Not Constitute Bad Faith

The unpublished case of Decena, et al, v. Pacific Specialty Insurance Company, No. B208401 (May 28) is a bad faith decision from Division One of the Second Appellate District arising out of an accident in which a crane fell on the plaintiffs’ home.  A judgment in favor of plaintiffs was awarded in the amount of [...]

May 28, 2010   Posted in: Blog  Comments Closed

Likelihood of Success In Producing Defendant Necessary To Extend Bail Forfeiture Set Aside Period

In the unpublished case of County of Los Angeles v. Indiana Lumbermens Mutual Insurance Company, No. B215051 (May 27), Division Three of the Second Appellate District considered Lumbermens’ appeal from an entry of summary judgment following the trial court’s order denying the surety’s extension of the 185-day period in which Lumbermens could set aside a [...]

May 27, 2010   Posted in: Blog  Comments Closed

Jury Need Not Determine Efficient Proximate Cause Of Loss When All Possible Causes of Loss Are Excluded Under HO Policy

The case of Barnett v First National Insurance Company of America, No. B203310 (May 26), is a partially published decision from Division Seven of the Second Appellate District dealing with a coverage claim under a homeowners’ insurance policy after water damage from rainfall led to mold infestation.  At trial, the insurer obtained a judgment on [...]

May 26, 2010   Posted in: Blog  Comments Closed

Auto Accident Judgment Based On Inconsistent Verdict Reversed

In the unpublished case of Padilla v. Thomas, No. B213724 (May 26), Division One of the Second Appellate District was confronted with a a special verdict form in which the jury failed to follow the instructions regarding which questions to answer and when to stop answering questions.  The appellate court found that, in and of [...]

May 26, 2010   Posted in: Blog  Comments Closed

Labor Code Section 2802 Provided No Basis For Insurer To Obtain Subrogation Against Underlying Judgment

In the unpublished case of LaBlue v. Catholic Healthcare West (Centennial Insurance Company, Intervener), No. F056146 (May 25), the Fifth Appellate District heard an appeal from LaBlue and Centennial from a judgment entered against them after a court trial.  LaBlue, placed by Placement Pros to work at a Catholic hospital, filed the action alleging that [...]

May 25, 2010   Posted in: Blog  Comments Closed

Repeal of Labor Code Section 139.5 Requires Reconsideration of WCAB Decision Awarding Vocational Rehabilitation Maintenance Allowance

In  Los Angeles County Fire Department v. Workers’ Compensation Appeals Board and Clifton Norton, No. B214649 (May 25), Division Eight of the Second Appellate District reviewed a WCAB decision awarding a Los Angeles County Fire Department battalion chief vocational rehabilitation maintenance allowance at the temporary disability indemnity “delay” rate from September 8, 2005 to August [...]

May 25, 2010   Posted in: Blog  Comments Closed

Steve Poizner Applies For A Promotion

There are many ways someone can be a successful Insurance Commissioner.   The two outstanding commissioners of the last forty years, Richards Barger and Bruce Bunner, were polar opposites.  One never knew whether Barger really internalized (or even cared about) the finer points of California insurance law and accounting, but his ability to mediate competing views [...]

May 25, 2010   Posted in: Blog  Comments Closed

Abatement Of Second Action Is Proper Remedy Where There Is A Prior Action Pending

Price v. Automobile Club of Southern California, No. B212806 (filed May 18; received for posting May 24), is an unpublished opinion from Divison Three of the Second Appellate District.  Price, an Auto Club employee, filed a class action in Los Angeles Superior Court alleging various Labor Code and unfair competition violations.  Eight months earlier, another [...]

May 24, 2010   Posted in: Blog  Comments Closed

Where No Determination Made That A Conflict of Interest Exists, Motion To Compel Arbitration of Cumis Fees Properly Denied

In the unpublished case of Savvy Property Management, et al, v. United National Insurance Company, No. B214549 (May 24), Division Three of the Second Appellate District upheld a trial court ruling that a motion to compel arbitration of Cumis fees should be denied where there had been no determination that a conflict of interest justifying [...]

May 24, 2010   Posted in: Blog  Comments Closed

Second Appellate District Rejects Policy Interpretation That Would Have Allowed Insurer To Avoid Defending Case For Which It Was Obligated To Provide Indemnity

Mt. Hawley Insurance Company v. Gemini Insurance Company, No. B218416 (May 24), is an unpublished decision from Division Three of the Second Appellate District dealing with a coverage dispute between two carriers.  Mt. Hawley filed the case alleging that Gemini had wrongfully refused to participate in the defense of the underlying case brought against California [...]

May 24, 2010   Posted in: Blog  Comments Closed

No Subrogation By Insurer Against Lessee Which Paid For Property Insurance For Damage From Fire Caused By Lessee’s Negligence

The unpublished case of Amco Insurance Company v. Ninjin Japanese Restaurant, No. B216595 (May 24), involved the intersection of a property insurance policy with a waiver of subrogation provision in a lease.  Raymond Carriere was the lessor of the property.  Ninjin was the lessee. According to the complaint, Amco issued a property insurance policy to [...]

May 24, 2010   Posted in: Blog  Comments Closed

Penal Code Code Section 1305 (c) (3) Relief Denied Surety Where No Evidence Provided That Individual Arrested Was In Fact The Person Named On Notice To Appear

In the unpublished case of County of Los Angeles v. Safety National Casualty Corporation, No. B214806 (May 24), bail was forfeited after a defendant failed to appear in court in Los Angeles County.  Within 180 days of the forfeiture, a person with the same name as the defendant was issued a notice to appear in [...]

May 24, 2010   Posted in: Blog  Comments Closed

State Farm Files California’s First Pay-As-You-Drive Automobile Insurance Program

Commissioner Poizner announced today that State Farm Automobile Insurance Company is the first insurer to submit an application to offer a new program that rewards California drivers who voluntarily drive fewer miles with lower auto insurance rates. “It’s just common sense that Californians who choose to drive less should have an option to pay less [...]

May 21, 2010   Posted in: Blog  Comments Closed

Prop. 213 Bars Non-Economic Damages Recovery By Uninsured Driver Who Spilled Coffee Purchased At Jack in the Box Drive-In Window

In the case of Chude v. Jack In The Box, Inc., No. B212874 (May 21; ordered published May 27), plaintiff Chude, an uninsured driver, suffered second degree burns when she spilled coffee she had just purchased at the drive-in window of a Jack In The Box.  Her negligence action was resolved after the trial court [...]

May 21, 2010   Posted in: Blog  Comments Closed

WCAB Temporary Disability And Deferring Permanent Award Decisions Upheld

In the unpublished case of E & J Gallo Winery v. Workers’ Compensation Appeals Board and Carmela Garcia, No. F058643 (May 20), the Fifth Appellate District upheld a WCAB decision awarding temporary disability benefits and deferring a permanent disability determination in order to obtain further information.  The Court agreed that Garcia’s termination “for cause”  when [...]

May 20, 2010   Posted in: Blog  Comments Closed

Trial Court’s Refusal To Stay Or Dismiss Coverage Proceedings Based On Forum Non Conviens Upheld

In Sulzer Pumps (US) Inc. v. Superior Court (Pacific Indemnity, et al), No. B222280 (May 20), Division Three of the Second Appellate District upheld a trial court order denying Sulzer’s motion to dismiss or stay a California coverage action brought by various insurers on the grounds of forum non conviens in favor of another action [...]

May 20, 2010   Posted in: Blog  Comments Closed

Insurer Not Entitled To Subrogation Where Construction Company Was Additional Insured Despite Contention Such Listing Was A Mistake

In the unpublished case of OneBeacon Insurance Company v. Pankow Residential Builders II, LP, No. A124986 (May 18), Division Four of the First Apppellate District upheld the trial court’s decision not to reform an insurance policy on the basis of the insurer’s contention the construction company was included in an endorsement by mistake and therefore [...]

May 18, 2010   Posted in: Blog  Comments Closed

Equitable Contribution Judgment Affirmed Where Appellant Could Not Establish Injured Party Was Special Employee And Policy Did Not Exclude Coverage For Claims Against Additional Insured For Which It Could Have Both Direct And Indirect Liability

In the unpublished case of Colony Insurance Company v. First Specialty Insurance Corporation, et al, No. D055213 (May 18), Division One of the Fourth Appellate District was faced with an appeal by Colony from a judgment for equitable contribution in favor of First Specialty and StarNet Insurance Company after they paid a settlement in a [...]

May 18, 2010   Posted in: Blog  Comments Closed

Bail Forfeiture Upheld Where Exoneration Provisions Inapplicable And Proper Procedures Not Followed

In the unpublished case of The People v. Lexington National Insurance Corporation, No. B213268 (May 17), Division Eight of the Second Appellate District affirmed the trial court’s order that Lexington was not entitled to a vacation of a summary judgment for bail forfeiture.  The Court of Appeal, like the trial court, found that the exoneration [...]

May 17, 2010   Posted in: Blog  Comments Closed

Commissioner Issues Emergency Regulations To Implement Life Settlement Law

The Commissioner has issued emergency regulations intended to implement SB 98 (Calderon) and which will make specific the provisions of Insurance Code Sections 10113.1 et seq.  Signed into law last year, the Calderon bill gives the Insurance Commissioner jurisdiction to regulate life settlements.  The legislation imposes escrow and records requirements, prohibits various defined fraudulent practices, [...]

May 17, 2010   Posted in: Blog  Comments Closed

Ex Parte Communication Between Medical Evaluator And Party Requires Annulment Of WCAB Decision

Alvarez v. Workers’ Compensation Appeals Board; State Compensation Insurance Fund, et al, No. B218847 (May 14), is a decision from Division Five of the Second Appellate District in the wake of a denied workers’ compensation death benefits claim.  In the case, a panel qualified medical evaluator (Labor Code Section 4062.2) requested a copy of certain [...]

May 14, 2010   Posted in: Blog  Comments Closed

Wrongful Death Action Barred By Dismissal Of Prior Loss of Consortium Action

Boeken v. Philip Morris USA, Inc., No. S162029 (May 13) involves two follow-on actions flowing from the celebrated punitive damages case of Boeken v. Philip Morris, Inc. (2005) 127 Cal. App. 4th 1640, a suit brought by Richard Boeken, a long-term smoker, in which a punitive damages award of $50 million was upheld.  Richard Boeken [...]

May 13, 2010   Posted in: Blog  Comments Closed

75 Percent of California Insurers Agree To Forego Iran Investments; Met, Safeco, and Hartford Hold Out

Commissioner Poizner today announced that 1,010 insurance companies – more than 75 percent of insurers licensed to do business in California — have agreed to forgo future investments in 50 companies identified as doing business with Iran’s nuclear, energy or defense sectors. As of March 31, 2010, the Department disqualified an estimated $6 billion in [...]

May 13, 2010   Posted in: Blog  Comments Closed

Commissioner Schedules Workshop On Impact of Federal Health Reform On Policy Form Review Process

The Commissioner has scheduled a workshop regarding the implementation of federal insurance market reforms in California, particularly regarding those provisions that must be implemented by September.  The purpose of the workshop is to discuss ideas and concerns regarding the implications of this implementation for the policy form review process.  The workshop is scheduled for May [...]

May 13, 2010   Posted in: Blog  Comments Closed