San Diego partner Kristina A. Fretwell and Los Angeles Of Counsel Birgit Huber Willand recently teamed up for a decisive declaratory judgment win that allows SLE’s insurance carrier client to withdraw from the defense of its insured in a contentions mobilehome habitability action and avoid any duty to indemnify.
The case arose out of two related underlying lawsuits asserting habitability and other claims against a mobilehome park in San Diego, resulting in causes of action for nuisance, breach of contract, breach of duty of good faith and fair dealing (contract), intentional interference with property rights, negligence, breach of statutes, breach of warranty of habitability, breach of the covenant of quiet enjoyment, breach of unfair competition law, and declaratory and injunctive relief against the Insured. The CGL policy issued to the Insured included an endorsement excluding coverage for habitability claims. In addition, the endorsement stated that the insurer would “have no duty to defend or indemnify any insured in any action or proceeding alleging damages arising out of [habitability claims].”
After filing a Declaratory Judgment action in the Southern District of California, Kristina and Birgit moved for summary judgment arguing that the broadly worded habitability exclusion barred any duty to defend or indemnify the Insured in the underlying lawsuits, including the non-habitability causes of action. In an extensive 24-page opinion, the Court agreed, relying on numerous previous decisions enforcing “catch-all” provisions in policy exclusions to preclude coverage. The Court’s order appears to be the first California federal court decision to apply the catch-all provision in a habitability exclusion to preclude coverage for the entire action.
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Selman Leichenger Edson Hsu Newman & Moore LLP provides this information for educational purposes. Case results depend upon a variety of factors unique to each case. Case results do not guarantee or predict a similar result in any future case. This information should not be construed or relied on as legal advice or to create a lawyer-client relationship.
