Amending the Complaint Won’t Amend the Policy

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In a recent decision, the California Court of Appeal, Second Appellate District, has held that an insured cannot state a claim for breach of contract or bad faith based on an insurer’s refusal to defend, where the underlying action was not potentially covered because it involved allegations of misrepresentations regarding the quality of the insured’s own products. An insurer’s demurrer to the “duty to defend” complaint was sustained by the trial court without leave to amend.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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