State Farm Needn't Defend No-Damages Suit, Calif. Court Says

Law360, New York (October 2, 2013, 2:30 PM EDT) -- State Farm General Insurance Co. incurred no duty to defend a California residential community association until two ousted board members explicitly sought compensation for its alleged dereliction of parking enforcement, a state appeals court ruled Tuesday, saying coverage wasn't triggered by the mere potential for damages.

A unanimous panel of the Court of Appeal's Fourth Appellate District affirmed that State Farm was not required to infer that its insured was exposed to covered monetary damages and provide a defense when the underlying action only asked for...
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