Ashou

In Prudential-LMI Com. Insurance v. Superior Court (1990) 51 Cal.3d 674 [ 274 Cal.Rptr. 387 , 798 P.2d 1230 ] (Prudential-LMI), the California Supreme Court held that the doctrine of equitable tolling applies to toll the statutory one-year suit provision in contracts of insurance. Under this doctrine, the one-year provision is tolled from the time the insured files a notice of claim to the time the insurer denies the claim. (Id. at p. 678.)

In this case, we consider whether an insurer’s reopening and reconsideration of an earthquake claim tolls the revived one-year period to bring earthquake claims set forth in Code of Civil Procedure section 340.9 (section 340.9). We conclude that it does, and therefore reverse the judgment of dismissal in favor of the insurer.

FACTUAL AND PROCEDURAL BACKGROUND

Plaintiff Raymonda Ashou’s home was damaged in the Northridge earthquake. She was, at the time, employed by her insurer, Liberty Mutual Fire Insurance Company (Liberty Mutual). Liberty Mutual settled Ashou’s claim for $52,000 in 1994. Ashou alleges both that she relied on Liberty Mutual’s representation that this was a sufficient amount to repair her home and that she feared…