Continental Insurance v. American Protection Industries

This is an action brought by Continental Insurance Company (Continental) against American Protection Industries (API) for recovery of losses sustained by Continental as a result of monies it was required to pay its insured and coplaintiff Fantastic International of California (Fantastic), in compensation for losses Fantastic suffered as a result of two burglaries of its warehouses.

In their first amended complaint, plaintiffs allege four causes of action: (1) negligence; (2) breach of contract; (3) fraud and deceit; (4) recision and restitution.

More than two years after the filing of the amended complaint, API moved for summary judgment against plaintiff Continental. Continental opposed the motion and also moved to amend its complaint to include a cause of action specifically entitled “Gross Negligence” alleging additional facts in support of the added cause of action.

The trial court granted API’s motion for summary judgment and denied Continental’s motion to amend the complaint. Subsequently, Continental filed a motion for new trial on the same issues before the court on the summary judgment motion and also filed a motion for reconsideration under section 1008,…