Calif. Appeals Court Rules No Damages Claim, No Coverage

Law360, New York (October 18, 2013, 2:08 PM ET) -- A California appeals court said Wednesday that insurers have no duty to defend a policyholder when a third-party lawsuit only seeks injunctive relief, because the failure to seek compensatory damages against the insured means the dispute is not a claim for damages under the policy.

In the underlying case, the San Miguel Community Association and William Beggs sued State Farm General Insurance Co., alleging it breached obligations to them under a liability insurance policy by refusing to reimburse them for the cost of defending the early...
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