Mulligan's Painters v. Safebuilt Ins. Services CA2/1

BACKGROUND

1. Factual Background On June 15, 2011, Mulligan’s commenced this action against Daniel Carmona (Carmona), Farmers Insurance Company, Inc., Truck Insurance Exchange, Farmers Insurance Exchange (collectively Farmers), SIS, and PCIC.1 The operative FAC alleged claims against SIS for negligence and declaratory relief. At issue in this appeal is Mulligan’s claim against SIS, which is the managing general agent of PCIC. Mulligan’s is a painting contractor. For 10 years, Mulligan’s purchased its liability insurance from Daniel Carmona at Daniel Carmona Insurance Agency.2 Mulligan’s customarily placed its policies with Carmona using various carriers. Mulligan’s paid its premiums by making a down payment at Carmona’s offices with the expectation that Carmona would use those sums to place policies. The financed amount was paid to General Agents Acceptance Corp. (GAAC).

1The original complaint is not part of the record on appeal. The first amended complaint (FAC) was filed November 1, 2012. In May 2013, the trial court denied Farmer’s motion for summary judgment. Daniel Carmona defaulted in this action and is not a party to this appeal.

2 Mulligan’s asserted that…