The Insurance Company of the State of Pennsylvania v. American Safety Indemnity Co.Annotate this Case
After plaintiff's insured (a general contractor) secured a default judgment against defendant's insured (a subcontractor), when a homeowner obtained an arbitration award against the general contractor, plaintiff indemnified the general contractor for the arbitration award. Defendant refused to indemnify the subcontractor for the amount of the default judgment and plaintiff then filed suit to recover from defendant under Insurance Code section 11580 the amount of the default judgment against the subcontractor.
The Court of Appeal affirmed the trial court's grant of summary judgment for plaintiff, holding that the default judgment was not void. The court also held that it was doubtful that the default judgment was secured in an action based upon property damage, and none of the authorities defendant cited required a contrary conclusion. The court rejected defendant's claims supporting its contention that plaintiff did not prove the default judgment was covered under any of defendant's policies. Finally, the court denied defendant's claim regarding the "per occurrence limits," and NMH's attorney fees and costs claims.