Judge: Michael Shultz, Case: 22STCV01434, Date: 2023-07-20 Tentative Ruling
Case Number: 22STCV01434 Hearing Date: July 20, 2023 Dept: A
22STCV01434
T.T. v. County of Los Angeles, Little People’s World, Inc.
[TENTATIVE] ORDER
Plaintiff alleges claims for negligence
for injuries suffered from sexually assault while Plaintiff was a ward of
Defendant, County of Los Angeles (“County”) and under the County’s and Little
Peoples’ World, Inc.’s (“LPW”) supervision.
Nonprofits Insurance Alliance of
California (“Intervenor”) moves to intervene on grounds it issued a liability
insurance policy to LPW, now a suspended corporation. LPW cannot defend itself
in this action as a result. Intervenor will be liable for any judgment obtained
against LPW. Therefore, Intervenor is the real party in interest with a direct
and immediate interest in the litigation. Intervenor timely served all
interested parties. No opposition has been filed.
Intervention is proper where the
intervenor shows an interest relating to the property or transaction which is
the subject of the action and disposition of that action may as a practical
matter impair or impede that person’s ability to protect the interest. (Code Civ. Proc., § 387.) Intervenor
has an interest in this litigation as it provides liability insurance to
Defendant LPW who cannot defend itself while it is suspended by the Franchise
Tax Board. (Declaration of Daniel Friedenthal, Ex. A.) A suspended entity
cannot participate in litigation. (Palm Valley Homeowners Ass'n, Inc. v. Design MTC (2000) 85 Cal.App.4th 553, 556.)
‘
An direct action against the insurer
of a defendant can be brought in the event the Plaintiff obtains a judgment
against the insured. (Ins. Code, § 11580 subd. (b) Intervention
is permitted to allow the insurer to protect its interests in the litigation
and to litigate fault or damage issues that its insured is procedurally barred
from pursuing. (Id.)
In Western Heritage Ins. Co. v. Superior Court (2011) 199 Cal.App.4th 1196, 1208
the
reviewing court stated that “unless [the insurer] is allowed to intervene, it
may have no other opportunity to litigate fault or damage issues in any action
brought by plaintiff on its judgment under Insurance Code section 11580. … The entire purpose of the intervention is
to permit the insurer to pursue its own interests, which necessarily include
the litigation of defenses its insured is procedurally barred from pursuing.” (Id.
at 1208.
Intervention by an insurer is
permitted where the insurer remains liable for any default judgment against the
insured, and the insurer has no means other than intervention to litigate
liability or damage issues.” (Reliance Ins. Co. v. Superior Court (2000) 84 Cal.App.4th 383, 385.)
Accordingly, the motion to intervene
is GRANTED. Intervenor is ordered to file its Answer-in-Intervention within
five days of this order.