Ninth Circuit: Excess Insurers Must Tread Carefully When Rejecting Demands Exceeding Primary Limits
Under California law, a liability insurer has a good faith duty to reasonably settle claims within its policy limits. In Diamond Heights Homeowners Association v. National American Insurance Co., the California Court of Appeal held that where a proposed settlement demand exceeds a defending primary insurer’s limits and has been approved by the insured and the primary insurer, an excess insurer has three options: (1) approve the proposed settlement; (2) reject it and assume the insured’s defense; or (3) reject it and face a potential lawsuit from the insured. 227 Cal.App.3d 563, 580-581 (1991). The rationale for this rule is that the excess insurer cannot force the primary insurer to continue defending a case that should resolve within the excess insurer’s limits. Read the article………….
California Court of Appeal Ruling Eliminates Strict Liability Standard for Supplier of Chinese Building Products
On January 26, 2017, the California Court of Appeal for the Fourth Appellate District, Division One, issued a 51 page
Home owners will soon be left paying the price for shoddy apartments, a consumer advocacy group warns in a scathing
Occasionally I get a call from someone that begins with “I need to sue my neighbor.” What the caller really