No Coverage Owed For Underlying Judgment Entered Against Insured, Panel Says

(December 6, 2018, 2:39 PM EST) -- LOS ANGELES — No coverage is owed for a judgment entered against an insured for breach of warranty of habitability claims alleged by the insured’s tenants because the insured failed to comply with the policy’s condition that required working smoke detectors in the insured building, the Second District California Court of Appeal said Dec. 3 in affirming the trial court’s decision to sustain the insurer’s demurrer to the tenants’ breach of contract and bad faith complaint (Debra Gray v. American Safety Indemnity Co., No. B289323, Calif. App., 2nd Dist., Div. 4, 2018 Cal. App. Unpub. LEXIS 8160)....