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Article: Calif. Court Says CGL Covers Contract Claims.
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- September 6, 1999
- Author:
CopyrightCOPYRIGHT 1999 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The California Supreme Court rejected 20 years of precedent and at least 15 pro-insurer cases to find that the commercial general liability policy covers liabilities arising from contracts as well as torts.
Policyholder attorneys hailed the decision as an end to a controversial coverage theory that had been sweeping the nation since the California Court of Appeals ruled in 1979 in International Surplus Lines v. Devonshire that the CGL policy didn't cover liabilities arising out of contracts.
In the recent case--Vandenberg v. Superior Court of California-the high court rejected insurers' arguments based on the International Surplus case that CGL policies ...