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Appellant insureds sought review of a summary judgment entered in the Superior Court of Los Angeles County

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Procedural Posture

Appellant insureds sought review of a summary judgment entered in the Superior Court of Los Angeles County, California, dismissing their first-party insurance bad-faith case against respondent insurance company.

 

Overview: Equip yourself with the most efficient business lawyers LA

Insureds brought a first-party insurance bad-faith case against their homeowner's insurer during the 1994 Northridge, California earthquake. The case specifically involved the applicability of newly-enacted Cal. Civ. Proc. Code § 340.9, which extended the limitations period for some Northridge-related cases. The insureds timely submitted a claim for earthquake damage, which the insurer paid. Later, the insureds found additional damage. The second claim was not filed within the reporting period required by their policy. The insurer obtained summary judgment solely on statute of limitations grounds. The insureds timely appealed. On review, the appellate court noted that while Cal. Ins. Code §§ 2070, 2071 mandated a one-year statutory period for filing suit, § 340.9 revived the claim.

 

Outcome

The judgment was reversed.

 

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