Insurance Issues Pending In California Supreme Court
USE NOTE: The information in this bulletin, including the framing of the issue presented, is taken from the California Supreme Court’s official website. Citations to the court of appeal's opinion are for informational purposes only. The grant of review automatically vacates the opinion, which cannot be cited as precedent.
Rental car coverage. What is the test for determining whether an insured is ‘engaged in the business of renting or leasing motor vehicles without operators’ under California Insurance Code § 11580.9(b)? Sentry Select Ins. Co. v. Fidelity & Guarenty, S145087, certified question from 9th Circuit, granted 8/23/06.
Bad faith/UIM claim. Whether an insurer acts in bad faith in resolving an underinsured motorist BI claim based on the insured's medical records alone, without consulting the insured's treating physician or having the insured examined by an IME doctor. Wilson v. 21st Century Ins. Co., S141790, formerly at 136 Cal.App.4th 97, review granted 4/26/06.
Rental car coverage. What is the test for determining whether an insured is ‘engaged in the business of renting or leasing motor vehicles without operators’ under California Insurance Code § 11580.9(b)? Sentry Select Ins. Co. v. Fidelity & Guarenty, S145087, certified question from 9th Circuit, granted 8/23/06.
Bad faith/UIM claim. Whether an insurer acts in bad faith in resolving an underinsured motorist BI claim based on the insured's medical records alone, without consulting the insured's treating physician or having the insured examined by an IME doctor. Wilson v. 21st Century Ins. Co., S141790, formerly at 136 Cal.App.4th 97, review granted 4/26/06.
Reinsurance, discovery. Does CCP § 2017 permit discovery of information about the existence and extent of reinsurance coverage and the financial condition of a reinsurer for a defendant’s insurer? Catholic Mutual Relief Society v. Superior Court, S134545, formerly at 128 Cal.App.4th 879, review granted 7/27/05.
Coverage, rental cars. Does the duty of an insurer to investigate the insurability of an insured apply to an automobile liability insurer issuing an excess liability insurance contract in a rental car transaction?” Philadelphia Indemnity Ins. Co. v. Montes-Harris, S130717, certified question from 9th Circuit, 3/2/05. OPINION ISSUED
Uninsured motorist arbitration, costs/prejudgment interest. (1) Do the statutes providing for an award of costs and prejudgment interest to a prevailing party who obtains a judgment exceeding a statutory offer to compromise apply to arbitration proceedings on claims for uninsured or underinsured motorist benefits? (2) If so, can the costs and prejudgment interest, together with the compensatory damages awarded, exceed the insured’s policy limits? Pilimai v. Farmers Ins. Exchange Co., S133850, formerly at 127 Cal.App.4th 1093, review granted 7/13/05. Opinion issued; to link to opinion: http://www.courtinfo.ca.gov/opinions/documents/S133850.PDF
Assigning Brandt fees. May an insured assign its right under Brandt v. Superior Court (1985) 37 Cal.3d 813 to recover the attorney fees incurred in order to obtain insurance policy benefits that the insurer denied in bad faith? Essex Ins. Co. v. Five Star Dye House, Inc., S131992, formerly at 125 Cal.App.4th 1569, review granted 5/11/05. YES, PER UNANIMOUS OPINION ISSUED 7/6/06: http://www.courtinfo.ca.gov/opinions/documents/S131992.PDF
"Under construction." Property policy excludes coverage for damages to a building vacant for more than 60 days except when the building is "under construction." Does this clause apply to a building undergoing renovation, or only to one being newly constructed? TRB Investments, Inc. v. Fireman's Fund, S136690, formerly at 130 Cal.App.4th 1594, mod. at 131 Cal.App.4th 1026a, review granted 9/28/05. OPINION ISSUED.
Coverage, rental cars. Does the duty of an insurer to investigate the insurability of an insured apply to an automobile liability insurer issuing an excess liability insurance contract in a rental car transaction?” Philadelphia Indemnity Ins. Co. v. Montes-Harris, S130717, certified question from 9th Circuit, 3/2/05. OPINION ISSUED
Uninsured motorist arbitration, costs/prejudgment interest. (1) Do the statutes providing for an award of costs and prejudgment interest to a prevailing party who obtains a judgment exceeding a statutory offer to compromise apply to arbitration proceedings on claims for uninsured or underinsured motorist benefits? (2) If so, can the costs and prejudgment interest, together with the compensatory damages awarded, exceed the insured’s policy limits? Pilimai v. Farmers Ins. Exchange Co., S133850, formerly at 127 Cal.App.4th 1093, review granted 7/13/05. Opinion issued; to link to opinion: http://www.courtinfo.ca.gov/opinions/documents/S133850.PDF
Assigning Brandt fees. May an insured assign its right under Brandt v. Superior Court (1985) 37 Cal.3d 813 to recover the attorney fees incurred in order to obtain insurance policy benefits that the insurer denied in bad faith? Essex Ins. Co. v. Five Star Dye House, Inc., S131992, formerly at 125 Cal.App.4th 1569, review granted 5/11/05. YES, PER UNANIMOUS OPINION ISSUED 7/6/06: http://www.courtinfo.ca.gov/opinions/documents/S131992.PDF
"Under construction." Property policy excludes coverage for damages to a building vacant for more than 60 days except when the building is "under construction." Does this clause apply to a building undergoing renovation, or only to one being newly constructed? TRB Investments, Inc. v. Fireman's Fund, S136690, formerly at 130 Cal.App.4th 1594, mod. at 131 Cal.App.4th 1026a, review granted 9/28/05. OPINION ISSUED.
