Centex Homes v. St. Paul Fire & Marine Ins. Co.
Annotate this CaseAt issue in this case was an insurance coverage dispute arising from underlying construction defect litigation in which Corona homeowners sued the developer, plaintiff-appellant Centex Homes for work performed by Centex’s subcontractors. One of the subcontractors, Oak Leaf Landscape, Inc., was insured by defendants-respondents, St. Paul Fire & Marine Insurance Company and St. Paul Mercury Insurance Company (Travelers). Centex was named as an additional insured on the Travelers’s policy. Centex appealed an order and judgment sustaining without leave to amend defendants’ demurrer to the seventh and eighth causes of action of the original complaint filed by Centex. The seventh and eight causes of action for declaratory relief centered on coverage and Centex’s right to independent counsel pursuant to Civil Code section 2860. Upon review of the dispute, the Court of Appeal agreed with the trial court’s ruling that the claims were neither “ripe” nor “actual”, and affirmed the judgment.
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