Calif. Appeals Court Reverses Duty To Defend Ruling

Law360, New York (December 16, 2009, 5:18 PM EST) -- A California appeals court has ruled that a typical clause in commercial auto insurance policies grants legal defense coverage to those parties who may be vicariously liable for a policyholder's conduct under the peculiar risk doctrine, reversing a lower court's decision.

In an opinion penned by Judge M. Kathleen Butz, the Court of Appeal of the State of California's Third Appellate District overturned a Superior Court of Sacramento County decision in favor of Progressive Casualty Insurance Co. and Wilshire Insurance Co. in a suit brought by...
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