Western Heritage Insurance v. Superior Court

In this case, petitioner, Western Heritage Insurance Company (Western Heritage), provided a defense to its insured, a commercial provider of home health care services, in an action for damages resulting from an automobile accident. The claim arose from an accident in which the insured’s employee drove in an allegedly negligent manner and plaintiffs’ decedent, her passenger, was injured. In addition to allegations that the insured’s employee negligently caused the accident, it is also claimed that she failed to seek or obtain medical treatment for the decedent following the accident and he later died from his injuries. The claim against the insured was based on the allegation that the employee had been acting in the course and scope of her employment. Thus, the insured’s alleged liability was vicarious in nature.

*1200 Western Heritage provided a defense to not only the insured, but also to the employee. It did so under a reservation of rights to dispute coverage under the general liability policy that it had previously issued to the insured. (See fn. 7, post.) During pretrial proceedings, the employee failed to provide verified discovery responses or appear for her…