Shanahan v. State Farm Gen. Ins. Co., 193 Cal. App. 4th 780 (2011)
Cheryl Skigin (an attorney) sued her employer John M. Shanahan and various companies he owned for sexual battery, among other things. Shanahan settled the lawsuit for $700,000. Shanahan, who had a renter’s insurance policy with State Farm, sued State Farm for breach of contract and breach of the covenant of good faith and fair dealing based upon State Farm’s refusal to defend Shanahan against Skigin’s lawsuit. State Farm asserted it had no duty to defend a charge of sexual battery because intentional acts are not covered by Shanahan’s policies. The trial court granted State Farm’s summary judgment motion, and the Court of Appeal affirmed. See also, Lemmer v. Charney, 2011 WL 1679858 (Cal. Ct. App. 2011) (attorney’s claim against former client for fraud associated with client’s representation that he would proceed with wrongful termination case against his former employer “to either settlement or trial” was properly dismissed).
