Lipson

This case concerns an insurance company’s attempt to have a posttrial judgment against its insured set aside after it initially declined to undertake the defense.

On May 12, 1989, plaintiff George Lipson filed a complaint for damages against defendants Jordache Enterprises, Inc., Ditto Apparel of California, Inc., Missy Creations, Ltd., and Ralph Nakash (collectively defendant or Jordache), alleging breach of contract and fraud. Plaintiff alleged he had worked as a commissioned sales representative for defendant (clothing manufacturers) from February 1981 until his termination in August 1988. He complained of breach of his sales commission agreement and fraudulent promise of long-term employment. He alleged damages in the total amount of $2,995,000, including loss of past wages, future income, and general and punitive damages. Defendant answered and raised 16 affirmative defenses, including the bar of the workers’ compensation system and at-will employment.

On November 5, 1990, plaintiff’s first amended complaint was ordered filed. This complaint added a cause of action for wrongful termination in violation of public policy and alleged personal harassment and emotional…