Monterey Insurance Co. v. 1725 Fulton Street, LLC
Defendant Stephen Arthur Brown failed to disclose, on an insurance application submitted to plaintiff Monterey Insurance Company, information about an apartment building’s prior claims history. After defending several claims brought by some of the building’s tenants, plaintiff filed a lawsuit against Brown and others for various causes of action, including fraud, based on Brown’s misrepresentations. Plaintiff now appeals from the trial court’s order granting summary judgment in favor of Brown. The trial court granted summary judgment after concluding plaintiff had waived its right to recover because it took no action when it received documentation of the property’s loss history after the insurance application was submitted. We agree with plaintiff that there are disputed issues of material fact as to whether it waived its right to sue for the misrepresentations that Brown made in procuring the insurance policy. Accordingly, we reverse.
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