Employers Reinsurance v. Mission Equities Corp.
California Court of Appeal
74 Cal. App. 3d 826, 141 Cal. Rptr. 727 (1977)
- Written by Sheryl McGrath, JD
Facts
Mission Equities Corp. (Mission) (defendant) provided malpractice insurance to a law firm from January 1, 1968, to January 1, 1969. The following year, the law firm obtained malpractice insurance from Employers Reinsurance (Employers) (plaintiff). The Employers policy was in effect from January 2, 1969, through at least the end of February in 1971. On February 22, 1971, a person filed a malpractice lawsuit against the law firm and alleged that the law firm had committed malpractice in 1968, which was when Mission’s malpractice policy was in effect. The law firm notified Mission and Employers of the malpractice lawsuit. Employers defended the law firm in the malpractice lawsuit and settled the suit. Employers then filed a declaratory-judgment action against Mission, seeking reimbursement for the settlement, plus costs and attorney’s fees. Both insurance companies sought summary judgment on the issue of whether Mission was liable to Employers. The trial court granted summary judgment in favor of Employers and ruled that Mission was liable for the malpractice claim. After a trial on the amount of damages, Mission appealed.
Rule of Law
Issue
Holding and Reasoning (Feinberg, J.)
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