Is a third party's claim against an insurance company for damages arising out of an underlying claim?

California, United States of America


The following excerpt is from California State Auto. Assn. Inter-Ins. Bureau v. Superior Court, 184 Cal.App.3d 1428, 229 Cal.Rptr. 409 (Cal. App. 1986):

[184 Cal.App.3d 1433] Nor is Sych v. Insurance Co. of North America (1985) 173 Cal.App.3d 321, 220 Cal.Rptr. 692, cited by petitioner at oral argument, applicable. Sych was an unfair practices action (Ins. Code, 790.03) by a third party against the insurer after a verdict had been returned in favor of the insurer's insured in the underlying action. The court properly held a predicate to a third party's action against the insurer was a conclusive establishment of liability against the insured. A contrary holding would permit relitigation of the issue of the insured's liability.

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