Insurance Caselaw Roundup (11/29/07)
Friday, November 30, 2007 at 09:24AM The following are some notable California insurance cases that have come out in the last two weeks.
Genuine Dispute Doctrine Left Intact (Wilson v. 21st Century Insurance Company - filed November 29, 2007.)
In relying on the genuine dispute doctrine, the California Supreme Court agreed with the Court of Appeal (and reversing the trial court) that plaintiff had demonstrated a triable issue of fact as to whether 21st Century’s decision to deny her underinsured motorist coverage claim was made unreasonably and in bad faith due to the particular facts of the case. This case is notable because many believed that it may have been the vehicle for the Court to circumscribe the application of the "genuine dispute" doctrine in bad faith cases. By leaving the doctrine intact, and confirming that a genuine dispute can be determined on summary judgment, the Supreme Court decided not to change the legal landscape of insurance bad faith litigation.
Find the full opinion here: http://www.courtinfo.ca.gov/opinions/documents/S141790A.PDF
"Resident Relative" Exclusion Applied (Bjork v. State Farm Fire and Casualty Company - filed November 21, 2007 - Fourth District, Div. One.)
In interpreting a homeowner’s policy that contained a “resident relative” exclusion, the Appellate Court held that the application of the exclusion to the sexual molestation of a minor by her father did not offend public policy and could stand as a valid basis for denying Plaintiff’s claim for benefits under the policy.
Find the full opinion here: http://www.courtinfo.ca.gov/opinions/documents/D049449.PDF
Pollution Exclusion Applied to Odors/Dust/Noise (Cold Creek Compost, Inc. v. State Farm Fire and Casualty Company - filed November 20, 2007, First District, Div. Two.)
The Appellate Court held that State Farm had no duty to defend or indemnify a compost maker from liability for damages sought and recovered by plaintiffs for compost odors, dust, and noise where the policy contained exclusion for pollution. The Court ultimately held that compost odors, dust, and noise that rose to level of a nuisance were pollutants.
Find the full opinion here: http://www.courtinfo.ca.gov/opinions/documents/A114623.PDF
James Castle, Esq. is a guest contributor and is an associate at Barger & Wolen LLP.
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