Summary Adjudication of Issues In Insurance Bad Faith Cases Reversed.

In a fire damage/insurance bad faith case, the trial court granted defendants’ motions for summary adjudication of issues.  As to the plaintiffs who lost because they did not timely submit a proof of loss, the appellate court reversed, stating:  “In order to enforce a defense based upon plaintiffs’ failure to provide a timely proof of loss, [the insurance company] must show it suffered substantial prejudice as a result.” Regarding the plaintiffs who lost because they delayed in giving a notice of loss, the appellate court reversed, finding the insurance company “forfeited the defense by not specifically objecting to the untimely notice of loss.”  With regard to the court’s granting SAI to the plaintiffs who sued for unfair business practices because such an action is barred by Moradi-Shalal v. Fireman’s Fund Ins. Companies (1988) 46 Cal.3d 287, [758 P.2d 58; 250 Cal.Rptr. 116], the appellate court reversed “because this cause of action is not barred by Moradi-Shalal.” As to the grant of SAI on the causes of action for joint venture and alter ego liability, the appellate court affirmed, stating the plaintiffs “failed to show the existence of a triable issue of material fact as to an inequitable result from treating the corporations as separate entities.”  Henderson v. Farmers Group, Inc.  (Cal. App. Second Dist., Div. 4; October 24, 2012) 210 Cal.App.4th 459.