New Plumbing Contractors v. Edwards, Sooy & Byron

Good Law
121 Cal. Rptr. 2d 472·2002 Cal. App. LEXIS 4321·2002 Daily Journal DAR 7179·99 Cal. App. 4th 799·2002 Cal. Daily Op. Serv. 5739
Court of Appeal of CaliforniaJune 25, 2002G028568California967 words

Opinion

Opinion

Bedsworth, J.

New Plumbing Contractors, Inc., appeals from summary judgment for the law firm of Edwards, Sooy & Byron in a professional negligence action. It argues there are triable issues of fact. We disagree, and so affirm.

New Plumbing provides plumbing services to developers and general contractors. Between 1985 and 1991, it carried comprehensive general liability insurance issued by Nationwide Mutual Insurance Company. The policy contained a “consent clause” that gave Nationwide the right to settle claims against its insured: “[Nationwide] may at our discretion investigate any ‘occurrence’ and settle any claim or ‘suit’ that may result.”

Nationwide provided the contractor with a defense in numerous construction defect cases. In 1996, they hired the law firm of Edwards, Sooy & Byron (Edwards) to defend New Plumbing in a case the parties refer to as “Brown/Emery.” On November 15, 1996, the contractor purchased insurance for the coming year (through Nov. 15, 1997) from a new insurer (Gerling) at a substantially higher premium and deductible than its prior coverage (with Fireman’s Fund for the years 1994 to 1996). Then, on December 18, 1996, at the recommendation of Edwards,…

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