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News Detail
Sedgwick Victory: Insurer v. Business Owner
October 2011
Sedgwick Earns Bench Trial Victory in Coverage Dispute Action
Sedgwick Orange County attorneys Craig Kline and Eric Strongin, assisted by Sheyanne Bane and Chelsea Trotter, obtained complete victory at a bench trial on behalf of our client, an insurer, in a coverage dispute in California state court. Our client issued a specialty lines shipping and storage policy to a business that shipped, stored and installed fine art. Another insurer issued a multilines policy for auto, inland marine movers, and commercial general liability coverage. One of the business’ employees mistakenly removed the cardboard framing from around some paintings, and owners of the paintings sued the business. After agreeing to defend its insured, our client, believing that its policy covered only the storage of goods or shipment of goods while in transit, subsequently learned that the business had not shipped the paintings to the owners’ home, where they were damaged. As a consequence, Sedgwick filed a lawsuit on our client’s behalf for contribution and equitable indemnity against the other insurer and the business for declaratory relief under both policies. Before trial, our client unsuccessfully brought a motion for summary judgment. At trial, Sedgwick persuaded the judge to reverse her prior findings on a summary judgment motion to rule in our client’s favor. The court found that our client’s policy was unambiguous; the care, custody or control exclusion contained in the other insurer’s policy did not apply; and that the other insurer’s policy was obligated to pay the business’ defense costs and indemnify the business.
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