Insurance
Dec. 14, 2011
A new twist on the duty to defend in California
A tale of caution for attorneys representing insureds that are in, or considering, bankruptcy. By John J. McLeod, Daniel H. Rylaarsdam and Mia O. Hernandez of McLeod Law Group APC
California courts have repeatedly held that all that is required to trigger an insurer's duty to defend is to show a mere "potential" for coverage. (See, Gray v. Zurich Ins. Co. (1966) 65 Cal.2d 263.) Yet, a court recently appeared to apply a different test with respect to a bankrupt insured. (Jones v. Golden Eagle Ins. Co., 2011 DJDAR 17067 (Nov. 28, 2011, Case No. A129089)....
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