Global Modular, Inc. v. Kadena Pacific, Inc.

A subcontractor’s commercial general liability insurance policy did not exclude coverage of water damage to the interiors of modular units it supplied since the damage was not the specific part of the units on which the subcontractor was then working nor the part on which the subcontractor incorrectly performed its work.  A CGL policy’s exclusion…

Montrose Chemical Corp. v. Superior Court

The insured was not entitled to require an excess insurer to pay under its policy just by showing claims remained unpaid after exhausting all underlying policies for the one policy year, as some excess policies’ “other insurance” provisions required exhaustion of insurance issued for other policy years if it covered the same loss.  Distinguishing State…

Pulte Home Corp. v. American Safety Indemnity Co.

A construction subcontractor’s CGL policy did not clearly exclude “completed operations” coverage for an additional insured (here, the developer) or terminate insurance coverage when the subcontractor finished working on the project.  Following Pardee Construction Co. v. Insurance Co. of the West (2000) 77 Cal.App.4th 1340, this decision interprets coverage for an additional insured (the developer)…

Los Angeles Lakers, Inc. v. Federal Ins. Co.

Any Telephone Consumer Protection Act claim necessarily involves an invasion of privacy, so such a claim fell within the invasion of privacy exclusion to the insured’s directors & officers insurance policy.  The lead opinion in this splintered decision holds that a Telephone Consumer Protection Act claim necessarily involves an invasion of privacy and so the…

Riddell, Inc. v. Superior Court

If the issues in a insurance coverage declaratory relief action overlap the issues in the underlying litigation against the insured, the insurer cannot, over the insured’s objection, take discovery on the overlapping issues or litigate them in the declaratory relief action.  If the issues in a declaratory relief action over insurance coverage overlap the issues…

Mercury Casualty Co. v. City of Pasadena

A city is not liable in inverse condemnation for damage caused by a falling city-owned tree unless the tree was planted by the city as part of a civic improvement.   A tree is a work of public improvement for purposes of inverse condemnation liability if the tree is deliberately planted by or at the direction…

Mahan v. Charles w. Chan Ins. Agency, Inc.

An elderly couple stated an elder abuse claim against an insurance agency that schemed to gut their whole life insurance policies and replace them with a less desirable policy, all for the purpose of earning a larger commission.  An elderly couple stated an elder abuse cause of action against the insurance agency which arranged to…

Seneca Ins. Co. v. Strange Land, Inc.

A district court may abstain under the Colorado River doctrine only in extraordinary circumstances, not in an ordinary diversity action seeking damages and rescission under settled principles of state law.  The district court erred in granting a motion for Colorado River abstention in this case which an insurer had filed in federal court seeking rescission…

Tustin Field Gas & Food, Inc. v. Mid-Century Ins. Co.

Gas station’s insurance policy, which insured against collapse but not settling, cracking, shrinkage or expansion, did not cover needed repairs after the outer shell of the insured’s underground gas storage tank split open but inner steel lining remained intact.  If a property insurance policy covers “collapse” without specially defining the word, but also excludes coverage…

Duarte v. Pacific Specialty Ins. Co.

An insurer was not entitled to summary judgment on its rescission defense based on false answers to its insurance application questions, since the questions were ambiguously worded and the answers were arguably accurate under one reasonable interpretation of the questions; also, a defendant gives sufficient notice of its intent to rescind a contract on which…

Zubillaga v. Allstate Indemnity Co.

Summary judgment for insurer on bad faith claim is reversed due to a triable issue as to whether insurer’s dispute about the claim amount was genuine since the insurer had not updated its medical expert’s opinion based on new evidence of the extent of the insured’s injuries.  Allstate was not entitled to summary judgment on…

Pacific Bay Recovery, Inc. v. California Physicians’ Services, Inc.

Under the Knox-Keene Health Care Services Act, an out-of-network provider who gave substance abuse treatment to PPO subscribers was entitled to be paid by the PPO only the amount shown on its explanation of benefits form, since the treatment was not an emergency medical service and the provider had no contract with the PPO.  Under…