Home > Business Law, Construction Law, Real Estate Law > San Miguel v. State Farm finds No Duty to Defend Non-monetary Claims

San Miguel v. State Farm finds No Duty to Defend Non-monetary Claims

In the recently published case of San Miguel Community Assn. v. State Farm General Ins. Co. (October 1, 2013) (Cal.App.4th, No. G047738. Fourth Dist., Div. Three.), a Court of Appeals ruled that when an insurance company issues a liability policy, agreeing to indemnify its insured against a third party claim for damages covered under the policy, and to defend the insured against any such claim, the insurer does not have a duty to defend the insured against a third party lawsuit seeking only injunctive relief but no compensatory damages.  The insurer’s defense obligation requires it to provide the insured with a defense against a claim seeking damages potentially payable under the policy, not to defend the insured’s honor or otherwise assist it in resolving a non-monetary dispute which a claim for pure injunctive relief was.  It is important when tendering claims to your insurance carrier, to check that the claim has potential coverage and to engage experienced business and insurance law counsel to assist.

– All Rights Reserved © 2013 by Michael L. Mau, Esq. and The Mau Law Firm

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