KNCH is proud to announce that the verdict our San Diego partners Bob Carlson, Sharon Huerta and Sarah Long obtained against American Safety Indemnity Company has been upheld by the California Court of Appeal. The Court found that American Safety’s interpretation of its Additional Insured Endorsement was without foundation and that its many refusals to defend Pulte and other builders were made in bad faith and warranting the imposition of punitive damages. The opinion sheds considerable light on the interpretation of AIEs that contain an “ongoing operations” limitation. The published decision goes into exhaustive detail on the proper interpretation of those endorsements and the high barrier that a carrier must overcome if it is to deny a defense to an additional insured developer in good faith.
Congratulations to Bob, Sharon, and Sarah for clarifying this complex area of the law.Download Opinion »