Partner Meka Moore and Rebekah Yanni recently obtained summary judgment in favor of Selman Leichenger Edson Hsu Newman Moore LLP’s insurer client in the Central District of California in litigation involving breach of contract, bad faith, and UCL claims.
Before the litigation, the insurer rescinded the plaintiff’s policies based on misrepresentations concerning prior loss history in the insurance application. As a result of the rescission, the insurer denied obligations relating to the claim.
In granting summary judgment, the Court found that the application’s question concerning loss history was material and rejected the plaintiff’s argument that the question was ambiguous. The Court also rejected the argument that the plaintiff did not intend to conceal the prior losses, noting that a negligent failure to disclose is sufficient to permit rescission under the California Insurance Code.
Having determined that the insurer was entitled to rescind the policies, the Court ruled that all causes of action asserted in the lawsuit failed as a matter of law.
For questions regarding the decision or related insurance coverage issues, please contact Meka Moore.
