Nowlon
Nowlon v. Koram Insurance Center, Inc.
Opinion
Opinion
Boren, J.
The trial court sustained demurrers to Harold Nowlon’s first amended complaint without leave to amend. We conclude that Nowlon should be permitted to amend the complaint and reverse.
Facts
Nowlon alleges that he was injured when he slipped and fell at his place of employment. He theorizes that his fall was caused by the negligent acts of Western Building Cleaning Company (Western), which is not a party to this action.
Western had a general liability insurance policy issued by Mutual Fire Marine and Inland Insurance Company, located in Pennsylvania (Mutual). Mutual, which is also not a party to this action, agreed to insure Western against liability to third parties for personal injuries arising out of Western’s business activities. Respondent Koram Insurance Center, Inc. (Koram) brokered the policy to Western.
Nowlon brought suit against Western in 1984. In 1989, he discovered that Mutual, Western’s insurer, had become insolvent. He also discovered that Mutual was not authorized to transact business in the State of California. As a result, Mutual was not a member of the California Insurance Guarantee Association (CIGA), which guarantees the obligations of insolvent insurers…