Mazzocco

I.

INTRODUCTION

Farmers Insurance Exchange (Farmers) defended Karen Mazzocco and her

husband, Richard Lee Austin, in a lawsuit brought by Cheryl Johns after an altercation

between Austin and Johns at the entrance to the gated community where Mazzocco and

Austin lived. The altercation occurred after Austin drove around Johns's car and then

stopped short, causing Johns to bump into Austin's car, at low speed. Austin got out of

his vehicle and proceeded to assault Johns and damage her vehicle and personal property.

Austin ultimately pled guilty to a charge of felony vandalism, which the court agreed

would be reduced to a misdemeanor upon his payment of full restitution to Johns.

Johns filed a civil lawsuit against Austin and Mazzocco (the Johns action).

Farmers, Mazzocco's automobile insurer, provided a defense to Austin and Mazzocco in

the Johns action, subject to a reservation of rights to disclaim coverage and obtain

reimbursement of defense costs expended to defend against claims and/or parts of claims

that were not potentially covered under the policy.

After three years of litigation, and disagreement between Farmers and Austin and

Mazzocco, as to…