California Court of Appeal

In case where homeowner in construction defect case obtained a default judgment against the contractor then brought action against the contractor's insurer for payment on the default judgment, summary judgment for insurer is reversed as: 1) where a default judgment results from a lack of notice by the insured, the insurer is liable on the judgment unless it suffered actual, substantial prejudice; and 2) the mere inability to investigate the claim thoroughly or to present a defense in the underlying suit does not satisfy the prejudice requirement.

Appellate Information

• Decided 12/28/2007
• Published 12/28/2007

Judges

• MALLANO, Acting P.J.

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Krane & Smith, Encino, and Ralph C. Loeb, Los Angeles, for Plaintiff and Appellant.


• For Appellees:
  
• Law Offices of Karen-Denise Lee and Karen-Denise Lee, Torrance, for Defendant and Respondent.