Reported Cases

Taormina Theosophical Community v. Silver (1983) 140 Cal.App.3d 964. At trial, a landowner challenged the constitutionality of a covenant, condition and restriction that excluded ownership in a retirement community based on religious affiliation and a minimum age of 50. The trial involved expert testimony on whether theosophy was a religion. The Court determined that religious and age discrimination was unconstitutional under the California Constitution.

Southwell v. Mallery, Stern & Warford (1987) 194 Cal.App.3d 140. A medical malpractice action was tried to a verdict against a doctor. A press release was published by two newspapers which the doctor claimed were libelous. The doctor was allowed to proceed with his libel action against the lawyers who successfully sued him.

Toyota Motor Sales U.S.A., Inc. v. Superior Court (1990) 220 Cal.App.3d 864. A personal injury action against a pizza delivery man and the pizza franchise in a rear end auto accident. The Court of Appeal reversed the decision of a trial judge who approved a nominal settlement with the pizza franchise. The trial court incorrectly determined that the pizza delivery man was an independent contractor when evidence proved he was an employee of the franchise and the settlement was reversed to require the franchise to pay a larger settlement.

Nowlan v. Koram (1991) 1 Cal.App.4th 1437 An man injured on a commercial property was permitted to sue the property owner's insurance broker for selling liability insurance from an out-of-state insurer not authorized to transact business in California.

ITT Small Business Finance Corp. v. Niles (1994) 9 Cal.4th 245 A lender brought a malpractice action against an attorney arising from the attorney's negligent preparation of loan documents. The Court of Appeal decided that the statute of limitations barred the action in a "transactional malpractice" matter because appreciable harm occurred more than a year before the action was brought. The California Supreme Court affirmed.

Safeco Insurance Company of America v. Parks (2004) 122 Cal.App.4th 779 (Parks I) A pedestrian was hit by a car on the freeway and fled. The pedestrian suffered serious injuries including a lengthy coma and amputation of a leg. He sued his former girlfriend who abandoned him on the freeway late at night. The pedestrian obtained a judgment against the former girlfriend for over $2,187,886. He then sued her insurance company for breach of contract alleging that the insurance carrier failed in bad faith to defend and indemnify the former girlfriend. In a separate trial, the trial court found that the insurance company owed a duty to defend and indemnify and upheld the judgment. The Court of Appeal reversed.

Safeco Insurance Company of America v. Parks (2009) 170 Cal.App.4th 992 Five years after its decision in Parks I and after another bad faith jury trial, the Court of Appeal affirmed a judgment for the pedestrian for $3,245,333 against Safeco for acting in bad faith for failing to conduct a reasonable investigation and failing to provide a defense for the pedestrian's former girlfriend. The insurer raised dozens of excuses for its conduct and managed to delay payment of the claim for nearly a decade when it had an opportunity to settle the claim nine years earlier for a $100,000 policy limit.