If an Insurer Wants to Defeat Coverage it Should Collect Convincing Evidence

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Travelers sued for declaratory relief concerning the defense costs incurred and default judgment obtained against its insured, Bayo Vista Condominium Association (“BVCA”), in a declaratory relief action. In Travelers Property Casualty Company Of America v. 127 Bayo Vista Condominium Association- Oakland, et al., Case No. 19-cv-04697-SI, United States District Court Northern District Of California (May 28, 2021) the USDC considered multiple grounds to avoid defense and indemnity and found them wanting.

ZALMA OPINION

Trial courts really hate to grant motions for summary judgment because such judgments are often reversed by appellate courts. Travelers and the other insurers had some serious defenses to the claims made by the insured all of which were dismissed by a finding that there are issues of fact that were not resolved to the satisfaction of the USDC. They either filed really poor motions or were met with a judge who preferred trial. If the arguments made by the insurers are capable of being backed up with admissible evidence they will succeed and if they don’t have the evidence they will lose.