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Case Citations [1] (July 2019 - August 2020)

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                         LIABILITY INSURANCE



     CHAPTER 2. MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

                                      TOPIC   1. DEFENSE

§ 13. Conditions Under  Which  the Insurer Must Defend

N.D.Cal.2019.  Subsec. (1) quot. in sup. Insurer that issued commercial-general liability policies to
landlords sued insureds and their other insurer, seeking a declaration that it did not have a duty to defend
insureds against an underlying landlord-tenant action, in which tenants alleged causes of action against
insureds for, among other things, violation of state and local habitability and zoning laws, constructive
eviction, and breach of the implied warranties of habitability and quiet enjoyment. This court granted
summary  judgment  for plaintiff, holding that plaintiff did not have a duty to defend, because the
undisputed material facts showed that there was no potential for coverage under the policies for claims
raised in the underlying action under Restatement of Liability Insurance § 13. The court explained that
the underlying action, which alleged the loss of a leasehold interest, did not raise a potentially covered
claim under the policies for loss of use of tangible property. Scottsdale Insurance Company v. Darke,
424 F.Supp.3d 638, 642.


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