Beaumont-Gribin-Von Dyl Management Co. v. California Union Insurance

Defendant, California Union Insurance Company (Cal Union), appeals from a judgment entered in favor of plaintiff BeaumontGribin-Von Dyl Management Company, a California corporation (Management), on a policy of professional malpractice insurance. The policy provides maximum coverage of $500,000, with an amount of $2,500 deductible “from the total amount resulting from each claim.” The resolution of the primary issue before us depends upon whether the word “claim,” within the meaning of the insurance policy, is ambiguous.

Management was a property management organization acting as property manager for a number of property owners in the Santa Barbara area. Its responsibilities included collecting rentals from the occupants of the various properties, depositing them into a trust account, paying the clients’ bills, and disbursing the balance of the rental proceeds to the clients.

On November 9, 1971, Management consummated a sale of its property management business to Syncom Management Company. As part of this sale, it transferred to Syncom a bank trust account in which some 34 of its clients had interests. Management had not requested or received the consent of its clients…