Defendants, who owned rental dwellings, were sued by the U.S. Justice Department for violation of the Fair Housing Act [42 U.S.C. §3604(a)-(d)] for refusing to rent to non-Korean tenants, refusing to rent to African Americans, refusing to rent to families with children and advertising with a preference for Korean tenants. They tendered the defense of the action to three insurance companies. The Court of Appeal affirmed the trial court’s determination that only the insurance company that provided coverage for discrimination had a duty to defend. Federal Insurance Company v. Steadfast Insurance Company (Cal. App. Second Dist., Div. 5; September 24, 2012) 209 Cal.App.4th 668.
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