VTN Consolidated, Inc. v. Northbrook Insurance

Plaintiff, VTN Consolidated, Inc. (hereafter appellant or VTN) appeals from the trial court’s judgment dismissing this declaratory relief action after the demurrer of defendant Northbrook Insurance Company, Inc. (hereafter respondent or Northbrook) wás sustained with leave to amend, which VTN declined to do (Code Civ. Proc., § 581, subd. 3).

The allegations of the complaint which must be considered true for the purposes of demurrer (Grant v. Adams (1977) 69 Cal.App.3d 127 [ 137 Cal.Rptr. 834 ]) reveal the following factual background. On or about July 13, 1973, Northbrook issued VTN, an architecture and engineering firm, a professional liability insurance policy (policy No. 63-100-406) covering the period from July 13, 1973, to July 13, 1974. The policy explicitly provided that claims thereunder must be made during the policy period. Between July 13, 1973, and July 13, 1974, VTN performed professional services under a contract for New Environment Research Co., Inc., a corporation (hereafter NER). On September 27, 1974, two months after the expiration date of the policy, NER filed a cross-complaint for damages against VTN in the Santa Clara Superior Court. The…