David Kleis, Inc. v. Superior Court

Petitioners David Kleis, Inc., doing business as Beaumont Convalescent Hospital (Kleis), and Anthony Raoul David, its administrator (David), seek a writ of mandate directing the superior court to vacate its order denying their motion to stay the trial in their declaratory relief action against California Insurance Company (CIC) and Pacific Rim Assurance Company (Pacific Rim).

Kleis and David (collectively referred to as petitioners) were named as defendants in four lawsuits filed in the District Court for the Central District of California in 1993, which were ultimately consolidated into one complaint (the federal court actions). The basic thrust of these lawsuits is that David, as administrator of Beaumont Convalescent Hospital (Beaumont), sexually harassed the four female plaintiffs who were under his supervision and control. As a result, each of the plaintiffs resigned her employment at Beaumont.

Petitioners tendered the defense of the federal court actions to Pacific Rim, the insurer that had issued Kleis workers’ compensation and employer’s liability policy, and to CIC, which had issued Kleis a general liability policy of insurance. Pacific Rim agreed to defend…