Facts

Plaintiff Lennar Homes of California Inc. was sued by an adjoining property owner, for damages relating to subsidence. Plaintiff's tender of defense and indemnity to defendant Glencoe Insurance Ltd. was accepted, but subject to a reservation of rights. Defendant rejected plaintiff's request for an independent (Cumis) counsel. Plaintiff incurred substantial fees and costs defending itself in the underlying action.

Plaintiff sued defendant for breach of policy and bad faith to recover defense fees and costs in the underlying lawsuit.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed breach of insurance policy and bad faith.

DEFENDANT'S CONTENTIONS:
Defendant contended that it did not have an obligation to pay Cumis fees, and that most of the fees/costs were pre-tender or voluntary.

Result

The parties reached a settlement for $1,550,000.

Other Information

FILING DATE: Nov. 10, 2008.