Gray v. American Safety Indemnity Co. CA2/4
Plaintiffs Debra Gray and numerous other former tenants of an apartment building successfully sued the owner for multiple serious habitability violations. They did so as part of a settlement with the owner, which included an assignment of the building owner’s claim for bad faith and breach of contract against the owner’s insurer—American Safety Indemnity Co. (ASIC)—after ASIC refused to defend and cover those claims. The trial court sustained without leave to amend ASIC’s demurrer to the complaint on the ground that the building owner’s assignment of claims to plaintiffs included a release so broad that it encompassed the plaintiffs’ bad faith claims. We affirm the judgment for ASIC on an alternative ground—the building owner’s failure to comply with a condition precedent to coverage under the ASIC policy.
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