Present Developments:
 COURT REJECTS CLAIM THAT SUBCONTRACTOR IN BREACH OF CRAWFORD OBLIGATION TO DEFEND WAS JOINTLY AND SEVERALLY LIABLE FOR ALL DEFENSE COSTS
A subcontractor had breached its duty to defend a general contractor under Crawford. An insurance company asserting a subrogation claim for defense costs argued that because of that breach, the defendant subcontractor was jointly and severally liable for all of the general contractor’s defense costs in the underlying construction defect action. In an order denying, in part, the insurer’s motion for summary adjudication, the court held the subcontractor did not have a duty to defend the entire action against the general contractor; that the subcontractor was only obligated to defend the general contractor as to matters embraced by the indemnity; and that the insurer had not established several elements of its claim for subrogation, including the defense costs attributable to the allegations of defects in the subcontractor’s work.
Robert L. Sallander, Jr. and Chip Cox represented the subcontractor defendant, Mid Valley Plastering, Inc.
The decision by Judge Wendy Getty of the Solano County Superior Court can be read here:
Judge Wendy Getty's Order
INSURED ORDERED TO REIMBURSE INSURER $1 MILLION
Underlying Settlement Was Not For An “Occurrence”
On July 29 2014, Orange County Superior Court Judge David Chaffee ordered Moorefield Construction to reimburse Navigators Specialty Insurance Company in full for the $1 million settlement paid in an underlying construction defect case.
The Court determined that the claim settled was not for an accident within the CGL policy definition of “occurrence” and that the insurer was entitled to reimbursement under Blue Ridge v. Jacobsen, 25 Cal. 4th 489 (2001).
The judgment in Navigators v. Moorefield, Case No. 30-2011-00492111 followed a five-day court trial in which Navigators established that to avoid per diem charges for completing the project late, the contractor made a calculated decision to install flooring too soon after pouring the concrete slab. Vapor emissions from the drying concrete caused the flooring to fail.
According to well-known coverage attorney and appellate-specialist-turned-mediator Michael Brady, the insurance industry has not often pursued recovery under Blue Ridge, believing that it cannot win. “This decision shows that insurers have rights and can prevail.”
Partner Robert Sallander and Associate Robin Thornton of Greenan, Peffer, Sallander & Lally LLP represented Navigators.
Read here:
Statement of Decision
Notice of Entry of Judgment
Judge Prepared to Sanction Lawyers in Cybersquatting Feud
View the full article here: http://www.therecorder.com/id=1202653853533/Judge-Prepared-to-Sanction-Lawyers-in-Cybersquatting-Feud
James Greenan, Chip Cox and GPSL team obtain summary judgment of multi-million dollar claims for copyright infringement and false advertising.
Read here: Kwan Software Engineering, Inc. v. Foray Technologies, LLC U.S.D.C. Case No. CV-12-03762 SI (N.D. Cal.)
GenRe endorses The 10% Solution.
Defense Research Institute publishes article written by Managing Partner Robert L. Sallander, Jr.
Read here: The Dangers of Being Deemed a “Recalcitrant Insurer”
Managing Partner Robert L. Sallander, Jr. and Associate Chip Cox win multi-million dollar insurance law appeal.
Read here: St. Paul Mercury Ins. Co. v. Mountain West Farm Bureau Mutual Ins. Co., 210 Cal.App.4th 645 (2012)
Partner Kevin Lally, Of Counsel John Makin, and Associate Robin Thornton win major tax appeal on behalf of Contra Costa County.
Managing Partner Robert L. Sallander, Jr. speaks at the West Coast Casualty Twentieth Anniversary Conference.
Three GPS&L lawyers named to panel of Northern California Super Lawyers
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