California Court Finds No Duty To Defend “Hypothetical” Claim Where Policyholder Did Not Rebuild Home
In Tarakanov et al. Lexington Insurance Co., 2019 WL 5541007 (N.D. Cal. Feb. 26, 2020), Magistrate Judge Laurel Beeler, in the United States District Court, Northern District of California, recently dismissed Plaintiffs’ claims in its Complaint that Lexington Insurance Company (“Lexington”) breached a homeowner’s policy it issued to Plaintiffs and that it acted in bad faith by refusing to pay extended replacement-cost coverage (“ERC Coverage”) and Ordinance Coverage. The court determined there was no requirement for…