Sanchez

After Sonia Sanchez obtained a stipulated judgment against L & C Janitorial Service Co. (L & C) and its owner, Cleveland Cadle, she brought a direct action against L & C’s insurer, Truck Insurance Exchange (Truck), as authorized by Insurance Code section 11580. Truck demurred, and the court sustained its demurrer without leave to amend on the ground that the “no action” clause in Truck’s policy precluded suit against it in cases where the judgment against its insured was entered on less than a full, adversarial trial. For reasons we shall explain, we reverse.

Standard of Review

In reviewing the sufficiency of a complaint against a general demurrer, we are guided by long-settled rules. “ ‘We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.’ [Citation.] . . . [W]e give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.] When a demurrer is sustained, we determine whether the complaint states facts sufficient to constitute a cause of action. [Citation.] And when it is…