Diamond Blue Enterprises v. Continental Ins. CA2/8

FACTS AND PROCEDURE

According to the first amended complaint, appellant (Diamond) is a limited liability company. Also according to the first amended complaint, appellant Tyrone Byrd was a member of Diamond and appellant Don Byrd was Diamond’s managing member. Tyrone Byrd represented to Gemini and represented in a declaration in the trial court that he was the sole member and president of Diamond. Diamond’s business included repairing and storing boats. In April 2007, Robert and Linda Whitmarsh purchased a boat, which they financed through Bank of America. They later conveyed their interest in the boat to their family trust. After the Whitmarshes defaulted on their loan with Bank of America, the Whitmarshes gave possession of the boat to Diamond for repairs. Eventually, Diamond held a lien sale and took title to the boat. In October 2007, Gemini issued a general liability policy to Diamond. According to Tyrone Byrd, Diamond paid the premium for the policy but did not receive a copy of the policy from its insurance broker. In October 2009, Continental issued a yacht policy to Diamond, expressly identifying Diamond as the insured. On July 24, 2009, Bank of America sued the…