New Case Clarifies Insurer’s Duty To Settle

In Reid v. Mercury Insurance Company, (2013) 220 Cal.App.4th 262, the Court of Appeal held that an insurance company may, under some circumstances, not have a duty to initiate settlement discussions to ensure settlement within policy limits. In the case, Mercury’s insured ran a red light and stuck another vehicle, causing serious injuries to Paul Read More…

Restrictions On Indemnity In Construction Contracts

One of the key risk management tools for contractors is the use of indemnity provisions in contracts.  The laws surrounding indemnity, however, are constantly evolving, most recently with the California Legislature’s enactment of Civil Code Section 2782.05. Section 2782.05 prohibits construction contracts that require a subcontractor to indemnify a contractor for the “active negligence” of Read More…