CDS attorneys obtain summary judgment in lawsuit involving $1.5 million stipulated judgment

Christian, Dichter & Sluga attorney Gena Sluga obtained summary judgment in Arizona Federal District Court for an insurer facing a $1.5 million stipulated judgment in an insurance bad faith action. In Wilshire Insurance Company v. Yager , No. CV-16-00192-TUC-JAS, 2018 WL 5801537 (D. Ariz. Nov. 5, 2018), the auto insurer denied coverage for a car accident because, although the vehicle was a covered auto, the driver was not listed as an insured as required by the policy. The policyholder had agreed to insure the vehicle for his friend, the vehicle owner/driver. However, the policy also required the driver to be listed as an insured. The driver’s assignee argued that the driver had a reasonable expectation of coverage and also that the insurer waived or was estopped from asserting coverage defenses by initially defending the driver without reservation. The Court found that the plain language of the policy did not include the driver as an “insured,” and did not create a reasonable expectation of coverage. Additionally, Arizona law did not support a finding of estoppel or waiver without evidence of prejudice caused by the delayed reservation of rights.