Peninsula Nephrology v. Claremont Liability Ins.
In a prior action, plaintiff Peninsula Nephrology, Inc. (Peninsula) sued a general contractor covered by insurance policies issued by two insurers. One of the insurers provided a defense, but the other, defendant Claremont Liability Insurance Company (Claremont), refused to participate. The litigation was ultimately settled and a stipulated judgment was entered that was, by agreement, nonrecourse to the defendants. Actual payments by the defendants covered only about half of the total judgment amount. Peninsula then filed this action to compel Claremont to pay the unpaid portion of the judgment. After a bench trial, the court concluded that Peninsulas actual damages were considerably less than the amount of the judgment and refused to compel payment from Claremont. Peninsula subsequently moved pursuant to Code of Civil Procedure section 663 to vacate the judgment, contending that the trial court erred in requiring it to prove that the judgment was reasonable in amount. The trial court denied the motion, and Court affirm.
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