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Insurance
Indemnification
Failure to Investigate

Scholle Corp. v. The Royal Insurance Co. of America

Published: Jun. 18, 2011 | Result Date: Oct. 29, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 04CC08964 Summary Judgment –  Defense

Court

Orange Superior


Attorneys

Plaintiff

Andrea R. Patton

Michael G. Dawe
(Prenovost Normandin Bergh & Dawe)


Defendant

Jean M. Lawler
(Lawler ADR Services, LLC)

Daniel G. Pezold

Bryan M. Weiss
(Murchison & Cumming LLP)


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.

Contentions

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.


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