California Capital Ins. Co. v. Scottsdale Indemnit
California Capital Insurance Company (California Capital) defended its insureds in a personal injury action filed against them. It rejected the personal injury plaintiff’s settlement demands. The judgment entered against the insureds far exceeded policy limits. California Capital entered into a postjudgment settlement with the claimant and made the agreed payment to satisfy the judgment against the insureds. California Capital then sued Scottsdale Indemnity Company (Scottsdale), alleging Scottsdale’s insurance policy, issued to another defendant in the underlying personal injury action, also covered California Capital’s insureds as additional insureds. California Capital sought to recover all or a portion of the amounts it paid to defend and indemnify its insureds in the underlying action.
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