California Insurance Litigation Blog

California Insurance Litigation Blog

Category Archives: Property & Casualty Insurance

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What’s a Policyholder to Do? California Court Permits “Conditional Judgment” Awarding Replacement Cost to Policyholders

Posted in Breach of Contract, Case Updates, Commercial General Liability Insurance, Insurance Bad Faith, Property & Casualty Insurance
When a covered property is damaged, the insured may face a quintessential Catch-22—the insured cannot afford to proceed with costly repairs or replacement without insurance money, but until the repairs or replacements are finished, the insured cannot recover under the replacement cost provision of the liability policy.  A recent court decision held a policyholder must … Continue Reading

New liability for claims adjusters the right move. Daily Journal Publishes McKennon Law Group PC Article.

Posted in Case Updates, Negligence, Property & Casualty Insurance
The April 21, 2014 edition of the Los Angeles Daily Journal featured Robert McKennon’s article entitled:  “New Liability for claim adjusters the right move.”  In it, Mr. McKennon discusses a new case which exposes insurance adjustors to negligent misrepresentation and intentional infliction of emotional distress claims by policyholders.  The article is posted below with the … Continue Reading

Property Insurers May Be Liable to Owners for Loss of Rents Resulting from Damaged Property

Posted in Breach of Contract, Case Updates, Insurance Bad Faith, Policy Interpretation, Property & Casualty Insurance
Commercial property owners may recover lost rental income from their insurer if they are unable to rent out damaged property, absent clear policy exclusions.  The California Court of Appeal recently held the owner of commercial property has a reasonable expectation of coverage for loss of rent, even if the property was not leased out at … Continue Reading

Insurer’s General Reservation of Rights Does Not Entitle Insured to Cumis Counsel

Posted in Commercial General Liability Insurance, Directors & Officers Insurance, Duty to Defend, Policy Interpretation, Property & Casualty Insurance
In a recent ruling, the California Court of Appeal held that an insurer’s general reservation of rights to deny coverage of damages outside its policy does not create a conflict of interest with the insured, such that the insured in entitled to Cumis counsel.  The decision in Federal Insurance Co. v. MBL, Inc. __ Cal. … Continue Reading

Reasonable Interpretation of Statute Does Not Preclude Triable Issue of Fact on Insurance Bad Faith Claim

Posted in Duty to Defend, Insurance Bad Faith, Property & Casualty Insurance
A recent California Court of Appeals decision sought to clarify the application of California Insurance Code Section 533.5(b) concerning the statute’s preclusion of an insurer’s duty to defend its insured in criminal actions.  In Mt. Hawley Insurance Co. v. Richard Lopez, Jr.,__Cal.App.4th___, 2013 Cal. App. LEXIS 346 (May 1, 2013) the Court of Appeals held … Continue Reading

Filing an Insurance Claim can be Protected Conduct Under Anti-SLAPP Law

Posted in Case Updates, Insurance Bad Faith, Property & Casualty Insurance
You have been probably wondering whether the filing of an insurance claim constitutes prelitigation activity that is protected under the anti-SLAPP statute, right?  Well, if you were, you now have an answer:  it is a resounding “maybe.” In People ex rel. Fire Insurance Exchange v. Anapol, 211 Cal. App. 4th 809 (2012), the California Court … Continue Reading

California Courts Give Effect to the Intent of the Parties to an Insurance Contract

Posted in Breach of Contract, Case Updates, General Liablity, Property & Casualty Insurance
A recent California Court of Appeals decision served as a reminder of the long-standing rule in California that the mutual intent of the parties will always control the interpretation of potentially conflicting provisions in an insurance contract.  In its recent decision in Gemini Ins. Co. v. Delos Ins. Co. (Dec. 5, 2012, B239533) __ Cal.App.4th … Continue Reading

Insurers May Intervene and Assert the Same Rights as Their Insured’s to Contest Both Liability and Damages

Posted in Case Updates, Commercial General Liability Insurance, Duty to Defend, Property & Casualty Insurance
Under certain circumstances, an insurer has the right to intervene in a case against its insured to protect its own rights and to avoid harm to the insurer.  These circumstances usually involve cases where an insured is either prevented from appearing and defending, or simply chooses not to and a default is taken against the … Continue Reading

Why Does The Pollution Exclusion in California Insurance Policies Exclude Asbestos Building Contamination But Not Pesticide Building Contamination?

Posted in Case Updates, Commercial General Liability Insurance, Duty to Defend, Homeowners Insurance, Insurance Bad Faith, Legal Articles, Policy Interpretation, Property & Casualty Insurance
According to a recent California appellate court decision, a contractor’s negligent release of asbestos fibers during the removal of asbestos-containing acoustical spray in a condominium complex is excluded by the pollution exclusion in a homeowner association’s property and liability policy, despite a 2003 California Supreme Court ruling that a contractor’s negligent spraying of pesticide in … Continue Reading

California Homeowner’s Insurer Not Required To Pay Extended Repair Limits Until Homeowner Shows Proof of Repair

Posted in Case Updates, Fire Insurance, Insurance Bad Faith, Property & Casualty Insurance
Under standard homeowner insurance policies the insurer is typically required to pay only the “actual cash value” of a loss—i.e., the fair (depreciated) market value—unless and until the insured actually incurs repair costs in excess of the actual cash value to repair the home.  In Kelly Minich, et al. v. Allstate Insurance Company, __ Cal.App.4th … Continue Reading

New ED CA Decision is a Feast of First-Party and Third-Party Insurance Coverage and Bad Faith Principles

Posted in Case Updates, Commercial General Liability Insurance, Duty to Defend, General Liablity, Insurance Bad Faith, Policy Interpretation, Property & Casualty Insurance
Every now and then a court decision comes along that is a virtual one-stop shop for basic insurance coverage and bad faith principles—a primer for newbie insurance attorneys and a refresher for seasoned litigators.  Chief Judge Anthony Ishii’s recent decision granting in part and denying in part an insurer’s motion for summary judgment on a … Continue Reading

New Ninth Circuit Decision Says California Law Requires Strict Compliance with Insurance Policy Warranty

Posted in Case Updates, Insurance Bad Faith, Policy Interpretation, Property & Casualty Insurance
Noting a paucity of recent California Supreme Court precedent on whether strict or merely substantial compliance with an insurance warranty is required to invoke coverage, the Ninth Circuit Court of Appeals recently held that California law requires strict compliance with a pilot warranty in an aviation insurance policy as a condition precedent to coverage.  Trishan … Continue Reading