California, United States of America
The following excerpt is from San Jacinto Z, LLC v. Stewart Title Guar. Co., G049208 (Cal. App. 2014):
In Clemmer v. Hartford Insurance Co., supra, 22 Cal.3d 865, a third party obtained a judgment against the insured in a wrongful death action and then filed suit against the insurer for satisfaction of the judgment. (Id. at p. 871.) The insurer had learned about the case the day before the hearing on a motion for entry of default against the insured and it disclaimed coverage about two weeks thereafter. (Id. at p. 881.) The court held the insurer was liable to satisfy the judgment. It observed that the right of a third party to sue an insurer for satisfaction of a judgment was established by statute and that the insurer could not defend itself on the basis of the insured's failure to comply with a notice provision unless it could demonstrate prejudice. (Id. at p. 882.) In the matter before us, however, we are not dealing with the rights of a third party to collect on a
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