Judge Martha K. Gooding, Case 2021-01221361 2022-10-10 Tentative Ruling

Judge: Martha K. Gooding, Case: 2021-01221361, Date: 2022-10-10 Tentative Ruling

1) Motion for Leave to Intervene

2) Status Conference

The motion of Sentinel Insurance Company (“Sentinel”) for leave to intervene in this action to defend the claim against its insured, Window Concepts, Inc., is GRANTED.

Sentinel shall file and serve its proposed answer, with the caption corrected to reflect it is an answer rather than a complaint, no later than October 21, 2022.

“[i]f any provision of law confers an unconditional right to intervene or if the person seeking intervention claims an interest relating to the property or transaction which is the subject of the action and that person is so situated that the disposition of the action may as a practical matter impair or impede that person's ability to protect that interest, unless that person's interest is adequately represented by existing parties, the court shall, upon timely application, permit that person to intervene.”

Code Civ. Proc. Code § 387(b).)

Because a liability insurer agrees to pay any judgment obtained against its insured (see Ins. Code § 11580(b)(2)), it has the right to intervene where an insured is barred from defending itself. In such cases, intervention is necessary to protect the insurer's own interests because it may be obligated to pay any judgment rendered against its insured (assuming no coverage defenses). Reliance Ins. Co. v. Sup.Ct. (Wells) (2000) 84 Cal. App. 4th 383, 386-387 (finding insurer entitled to intervene where insured barred from defending because its corporate status had been suspended for nonpayment of franchise tax).

A motion or application for leave to intervene must include a copy of the proposed complaint or answer in intervention. Code Civ. Proc. § 387(c). See Sutter Health Uninsured Pricing Cases (2009) 171 Cal. App. 4^th 495, 513 (affirming denial of leave to intervene where proposed intervenor did not submit proposed complaint in intervention.

Here, Sentinel has submitted a proposed answer, but the caption is titled “complaint in intervention.” [ROA #129.] Substantively, Sentinel is entitled to intervene, but the proposed answer needs to be corrected.

Moving party is ordered to give notice.