Fresno Unif. School Dist. v. Coregis Ins.
Filed 6/14/06 Fresno Unif. School Dist. v. Coregis Ins. CA3
NOT TO BE PUBLISHED
California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b). This opinion has not been certified for publication or ordered published for purposes of rule 977.
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
THIRD APPELLATE DISTRICT
(Sacramento)
----
| FRESNO UNIFIED SCHOOL DISTRICT, Plaintiff and Appellant, v. COREGIS INSURANCE COMPANY et al., Defendants and Appellants. | C037472
(Super. Ct. No. 99AS00773)
|
In this insurance bad faith case, Coregis Insurance Company and its affiliate California Insurance Company (Coregis) sold comprehensive liability coverage to the Fresno Unified School District (the District) and other school districts under a policy that included a special endorsement, offered at additional cost, marketed as providing coverage for discrimination claims. Two teachers, Shirley Wiley and Lan Bui, filed discrimination claims with the District, asserting violations of the Fair Employment and Housing Act. Although at least four different courts had rejected Coregis's contention that there was no potential coverage of discrimination claims because there was no occurrence under the policy, Coregis reasserted that position in denying coverage of the Wiley and Bui claims. In the ensuing lawsuit, the trial court granted the District's motion for summary adjudication of the insurer's duty to defend and to indemnify the Wiley claim, and thereafter granted the District's motions for directed verdicts of the Wiley breach of contract cause of action and the Bui coverage claim. A jury thereafter returned a verdict in the District's favor on its bad faith claim and awarded $13 million in punitive damages. Coregis appeals the summary adjudication, the directed verdicts, and the jury verdict. The District cross-appeals the trial court's reduction of the punitive damage award to $5 million. We must reverse the remittitur, reinstate the jury's verdict, and, in all other respects, affirm the judgment.
FACTUAL AND PROCEDURAL BACKGROUND
A. Insurance Policy History
In the early 1980's, Coregis sold the â€
