Legal Question in Civil Litigation in California

Home Owner's Insurance coverage

I am being sued over the sale of a home. The suit is entirely groundless. I had a reputable agent represent me, I disclosed everything about the property and repaired anything and everything that the buyer requested. The buyer was difficult through the entire process and continued after the close. Although all parties agreed to binding arbitration, the buyers filed a lawsuit in superior court. Our realtors and I do not even know what the actual complaint is. I have hired an attorney and we are scheduled for mediation. My lawyer informed me today that he will strongly recommend that if a settlement is offered by my realtor and accepted and we are only to be responsible for our own legal cost that I should accept it. I feel that is not acceptable since I have already spent $6,000 in legal fees and it is more like blackmail. I was told that my homeowners insurance should cover my legal fees for this by several people, however my insurance agent says that it won't cover it. Should I persue my insurance company, find a new lawyer or try to counter sue for my costs?


Asked on 4/02/02, 9:30 pm

4 Answers from Attorneys
Victor Hobbs Victor E. Hobbs

Re: Home Owner's Insurance coverage

I doubt your home owner's policy will cover the cost of the law suit. However, you always tender the defense of the case to them, and let them deny coverage. They may have a duty to defend. And they'll tell you what they believe their duty is. And then read the policy to attempt to determine if they are correct.

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Answered on 4/02/02, 10:51 pm
Mona Montgomery Mona Montgomery, Attorney at law

Re: Home Owner's Insurance coverage

My feeling (entirely worthless) is that your attorney is right. I'm not just saying that. You've got a complicated situation through no falut of your own and I think it is better to end it a.s.a.p. Sorry about the inconvenience, but at least you won't face a huge (even though unfair) verdict. I say that because verdicts are not predictable. Not always fair. You don't want to take the risk.

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Answered on 4/02/02, 10:57 pm
Joseph Marman Law Office of Joseph H. Marman

Re: Home Owner's Insurance coverage

Yes, all of that.

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Answered on 4/03/02, 10:44 am
Larry Rothman Larry Rothman & Associates

Re: Home Owner's Insurance coverage

Your lawyer should have tendered the lawsuit to your carrier. If this was not done, there may have been a waiver. Everything depends on what was sought in the complaint. If you fax me the complaint to 714 363 0229 and a copy of your insurance policy, I will provide you with free consultation as to the coverage issue.

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Answered on 4/10/02, 2:46 pm


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