legal news


Register | Forgot Password

Treweek v. California Capital Ins. Co.
The owners of an apartment building were sued in 47 separate small claims cases for allegedly creating a nuisance and permitting tenants to inflict emotional and mental distress on the small claims plaintiffs. The owners sought a defense and indemnity from their business liability insurer, which denied the claim on the ground that the small claims plaintiffs had not alleged bodily injury or property damage within the meaning of the policy.
The owners retained an attorney at their own expense and settled most of the small claims cases. They then filed this action against the insurer, alleging breach of contract and breach of the covenant of good faith and fair dealing. Ten months into this litigation, the insurer admitted it had made a mistake in denying the claim. It paid defense costs with respect to all of the small claims cases and indemnity with respect to six of the settlements.
The trial court granted summary adjudication in favor of the insurer on the breach of contract cause of action, concluding that the owners had received all of the monetary benefits due under the policy for defense and indemnity. The breach of covenant claim was tried to the court, which found for the insurer, stating that the failure to provide a timely defense and indemnity was the result of a mistake, not deliberate unfairness.
Court conclude that summary adjudication was improperly granted because the insurer may not have paid the full amount owed for indemnity. And because summary adjudication on the contract claim was improper, the covenant claim must be retried so the trial court may consider all of the circumstances surrounding the delay in paying indemnity. The judgment is therefore reversed.

Search thread for
Download thread as



Quick Reply

Your Name:
Your Comment:

smiling face wink grin cool nod sticking out tongue raised eyebrow confused shocked shaking head disapproval rolling eyes sad mad

Click an emoji to insert it into your message. You may use BB Codes in your message.
Spam Prevention:

    Home | About Us | Privacy | Subscribe
    © 2025 Fearnotlaw.com The california lawyer directory

  Copyright © 2025 Result Oriented Marketing, Inc.

attorney
scale