Summary Judgment Granted in Million-Dollar Coverage Case

May 2, 2011

Todd A. Chamberlain won a significant Motion for Summary Judgment on behalf of Markel International in the Alameda Superior Court before Judge Richard Keller.

The case was brought by California Capital Insurance ("CCI") against Markel International, Citation Insurance and their mutual insured, Roosevelt Owyang and Lumianda, LLC. The insured owned a number of apartments in Oakland and was sued for negligent maintenance, premises liability, habitability and nuisance claims by more than 40 current and previous tenants.

CCI agreed to defend the insured under a reservation of rights. Markel denied coverage on a number of grounds and declined to participate in the defense and settlement of the insured because there was no coverage or potential for coverage under its policies. In particular, Markel denied coverage because of the absence of property damage or bodily injury during their policy periods and the insured's knowledge of the claims prior to inception of the Markel policies.

CCI settled the underlying case for $1.3 million, incurring more than $500,000 in defense costs, and later sued Citation, Markel and the insured for reimbursement and indemnity. Along with interest, CCI claimed it was more than $2 million out of pocket. CCI settled with the insured and Citation, and sought at least half of the balance of approximately $2 million from Markel. The carriers then filed cross-motions for summary judgment.

The court granted M&C's motion with a judgment in favor of Markel and denied CCI's motion.

Carolyn A. Mathews assisted with the moving and opposing papers, particularly on the Personal Injury Coverage B "wrongful invasion" portion of the argument which figured in the decision.