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In the context of a coverage dispute, insureds brought a counterclaim against their insurer and a third-party complaint against their insurance agent alleging negligent failure to procure proper insurance coverage. The insureds had requested a policy equal to their previous policy with another carrier, which would have provided coverage. The trial court dismissed the insured’s claims as untimely. The appellate court reversed based on the agent’s fiduciary duty that was more significant than

In Thee Sombrero, Inc. v. Scottsdale Ins. Co. (No. E067505, filed 10/25/18), a California appeals court held that a property owner’s loss of the ability to use his property as a nightclub, based on revocation of a city’s conditional use permit (“CUP”), constituted covered property damage.In Sombrero, lessees operated a nightclub under the property owner’s conditional use permit from the City of Colton. A company hired to provide security negligently allowed admission to an armed patron, who shot

On October 17, 2018, the ABA Standing Committee on Ethics and Professional Responsibility issued Formal Opinion No. 483 addressing lawyers’ and law firms’ professional responsibilities during and after a cyber event. A link to the Opinion can be found here. Although advisory in nature and not binding in a court of law, lawyers would do well to heed the ABA’s advice concerning the ethical risks of being unprepared for or not properly responding to a cyber event.The Opinion noted that because lawy

October 18, 2018 In Lat v. Farmers New World Life Ins. Co. (No. B282008, filed 10/16/18), a California appeals court held that the notice-prejudice rule precluded a denial of life insurance benefits based on the insured’s failure to give notice of disability as required under a disability premium waiver rider.In Lat, premiums for the insured’s life insurance policy were accumulated in an account from which the cost of the insurance was deducted monthly. If the account balance fell below the nex

September 28, 2018 In Jones v. IDS Property Casualty Ins. Co. (No. C084065, filed 9/25/18), a California appeals court found that while there is a split of authority in the case law, under the insurer’s applicable policy wording a wife’s claim for loss of consortium was subject to the same per person limit of the defendant’s insurance policy as her husband’s claim for bodily injury.In Jones, the insured was sued for an auto accident, and stipulated to a judgment of $1.35 million for the other d