Facts

Jaidin Consulting Group LLC sued its insurer, the State Compensation Insurance Fund, after it declined to pay for attorney costs Jaidin incurred to defend a claim by one of its employees who alleged that he had been retaliated against for filing a workers' compensation claim. State Compensation Insurance later settled with the employee on behalf of Jaidin.

PLAINTIFF'S CONTENTIONS:
Jaidin contended that State Compensation Insurance had a duty to defend Jaidin but that Jaidin was forced to retain private counsel in its defense because State Compensation Insurance failed to take timely action in the face of ongoing litigation. Jaidin claimed that it was entitled to indemnification of $8,380 from State Compensation Insurance for the costs incurred in retaining private counsel.

Jaidin asserted claims for breach of contract of insurance and promissory estoppel.

DEFENDANT'S CONTENTIONS:
State Compensation Insurance contended that it was not obligated under the contract to pay for Jaidin's expenses in hiring a private attorney.

Result

The court sustained State Compensation Insurance Fund's demurrer without leave to amend.

Other Information

FILING DATE: June 10, 2015.