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Verdicts & Settlements

June 17, 2011

Daily Journal


CASE / NUMBER: Scholle Corp. v. The Royal Insurance Co. of America / 04CC08964.

COURT / DATE: Orange Superior / Oct. 29, 2010.

JUDGE: Hon. Steven L. Perk.

ATTORNEYS: Plaintiff - Michael G. Dawe, Andrea R. Patton (Prenovost, Normandi, Bergh & Dawe, Santa Ana).

DEFENDANT - Jean M. Lawler, Bryan M. Weiss, Daniel G. Pezold (Murchison & Cumming, LLP, Los Angeles).

FACTS: Insured supplied bags for the packaging of boxed wines. The bags were manufactured in the U.S., and allegations that the wine was contaminated generated in claims and losses in Australia and Europe. The insured sought coverage for the claim under its primary and excess insurance policies, and the carriers ultimately indemnified the insured for the loss, filing a subrogation action against the manufacturer in Australia.

PLAINTIFF'S CONTENTIONS: The insured filed suit against the carriers, alleging breach of contract and bad faith, claiming they had not properly investigated the claim nor indemnified it for the loss.

DEFENDANT'S CONTENTIONS: The carriers contended that they did not breach the contract, and had fully indemnified the insured.

RESULT: The court granted summary judgment to the defense.