Articles

1) THE CALIFORNIA SUPREME COURT HOLDS THAT THE "VACANCY" EXCLUSION IN A PROPERTY DAMAGE POLICY MAY NOT PRECLUDE COVERAGE

2) THE CALIFORNIA SUPREME COURT RULES THAT AN INSURER MAY SEEK REIMBURSEMENT OF DEFENSE EXPENSES IT CAN PROVE SOLELY RELATES TO NONCOVERED CLAIMS.

3) LIMITATION PROVISION IN AUTO POLICY HELD UNENFORCEABLE AS IT WAS NOT SUFFICIENTLY CONSPICUOUS

4) EQUITABLE INDEMNITY ACTION BY INSURER BARRED BY GOOD FAITH SETTLEMENT

5) THE CALIFORNIA SUPREME COURT DETERMINES THAT SITE INVESTIGATION COSTS MUST BE PAID BY AN INSURER UNDER ITS DUTY TO DEFEND.

6) “HIDDEN DECAY” IN FIRST PARTY POLICY HELD NOT TO BE LIMITED TO ORGANIC DECOMPOSITION

7) BAD FAITH DAMAGES AWARDED IN FAVOR OF LENDER ARE LIMITED BY THE CREDIT BID RULE

8) CALIFORNIA SUPREME COURT HOLDS THAT INSURER MAY BE ESTOPPED FROM ASSERTING STATUTE OF LIMITATIONS DEFENSE

9) COURT OF APPEALS HOLDS THAT AN INSURER MUST ADEQUATELY INVESTIGATE A LAWSUIT AGAINST A POLICYHOLDER WHICH MAY RAISE CLAIMS AT TRIAL NOT EXPRESSLY ASSERTED IN THE COMPLAINT.

10) THE NINTH CIRCUIT REAFFIRMS THAT AN INSURER CANNOT ESCAPE ITS DUTY TO DEFEND BY SHOWING THAT THE UNDERLYING ALLEGATIONS HAVE NO BASIS OF FACT.

11) INNOCENT CO-INSURED CAN RECOVER ON FIRE INSURANCE POLICY DESPITE OTHER INSURED'S FALSE STATEMENT REGARDING THE LOSS

12) SUPREME COURT RULES THAT LOSSES PLEADED AS CONTRACT DAMAGES MAY BE COVERED UNDER LIABILITY POLICIES

13) EMOTIONAL DISTRESS DAMAGES ARE RECOVERABLE IN AN INSURANCE BAD FAITH ACTION EVEN IF THE EMOTIONAL DISTRESS IS NOT SEVERE AND SUBSTANTIAL

14) NEW FEDERAL RULES OF BANKRUPTCY PROCEDURE CHANGES DEADLINES AND TIME FRAMES IMPACTING NUMEROUS MATTERS, INLUDING EFFECTIVE DATE OF RELIEF FROM STAY ORDERS. RFS ORDER IS NOT EFFECTIVE UNTIL 14 DAYS AFTER THE ORDER IS ENTERED, UNLESS SPECIFICALY WAIVED BY THE COURT. OLD TEN DAY RULE NO LONGER APPLIES