Vallejo

FACTS AND HISTORY OF THE PROCEEDINGS

Fire Issued a Policy on the Savoys’ Real Property covering the period from April 27, 2006, to April 27, 2007

In March 2005, De La Garza transferred interest in a house he owned (the property) to the Savoys. De La Garza continued to reside at the property after the transfer. Fire, a Farmers Insurance entity, issued a landlord’s protector insurance package (the policy) on the Savoy’s property which covered the period of April 27, 2006, to April 27, 2007. Though De La Garza was not specifically named as an insured under the policy, the jury found that he was an insured under the policy and neither party has challenged the jury’s finding on appeal. The policy included business liability coverage, under which Fire would pay “all damages from an occurrence which an insured is legally liable to pay because of bodily injury [or] personal injury . . . arising out of the ownership, maintenance, or use of the insured location covered by this policy.” The business liability coverage terms included a “Suit Against Us” provision, which stated, “[Fire] may not be sued unless there has been full compliance with the terms of this policy. No one…