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San Diego Navy Federal Credit Union v. Cumis Insurance Society

162 Cal. App. 3d 358 (1984)

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San Diego Navy Federal Credit Union v. Cumis Insurance Society

California Court of Appeal
162 Cal. App. 3d 358 (1984)

RW

Facts

Magdaline Eisenmann sued to recover compensatory and punitive damages from San Diego Navy Federal Credit Union (credit union) (plaintiff) for injuries that Eisenmann alleged were intentionally inflicted. The credit union’s insurer, Cumis Insurance Society, Inc. (Cumis) (defendant), retained a law firm to defend the credit union against Eisenmann’s suit. However, Cumis informed the law firm that the credit union’s policy excluded coverage for intentional injury and that, therefore, Cumis reserved the right to deny coverage at a later date. To protect its interests, the credit union hired its own lawyers to serve as cocounsel. Cumis refused to pay for the credit union’s lawyers. The credit union successfully sued Cumis for that payment. Cumis appealed to the California Court of Appeal.

Rule of Law

Issue

Holding and Reasoning (Gamer, J.)

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