Silva & Hill Construction Co. v. Employers Mutual Liability Insurance

Plaintiff Silva & Hill Construction Company, Inc. commenced this action against its insurer, Employers Mutual Liability Insurance Company, alleging defendant’s failure to defend and pay claims as provided by the terms of a liability insurance policy. Judgment was in favor of the plaintiff for $18,283.38 plus interest.

Plaintiff appeals from a portion of the judgment disallowing recovery in the amount of $31,000 for one item of damage allegedly sustained by plaintiff.

Defendant did not appeal.

This court in an opinion filed November 20, 1970, affirmed the trial court’s judgment. After granting a hearing our Supreme Court transferred this matter to this court “for reconsideration in light of section 14376 of the Government Code.”

The pertinent facts are undisputed and unchanged from those discussed in our original opinion, a copy of which is appended. [Post, pp. 928-932].

In its petition for rehearing in this court and for a hearing in the Supreme Court, plaintiff urged that our opinion cast doúbt on the validity of Government Code section 14376.

Following the Supreme Court’s referral for reconsideration, the Engineering and Grading Contractors Association obtained…