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Code of Civil Procedure Section 998 Penalties Apply to Insurer that Defends Action in Name of Insured’s Estate Under Probate Code Section 550

Posted by Haight Brown & Bonesteel LLP on Mar 5th 2019

Code of Civil Procedure Section 998 Penalties Apply to Insurer that Defends Action in Name of Insured’s Estate Under Probate Code Section 550
In Meleski v. Estate of Hotlen (No. C080023, filed 11/29/18), a California appeals court held that an insurer is subject to the penalties for failure to accept a statutory offer to compromise under Code of Civil Procedure 998, even though the estate of its deceased insured is the named defendant in an action that the insurer defends under Probate Code sections 550, et seq.In Meleski, the insured was at fault in an accident, but died before suit was filed. The complaint named his estate, although
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