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Johansen v. California State Automobile Association Inter-Insurance Bureau

538 P.2d 744 (1975)

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Johansen v. California State Automobile Association Inter-Insurance Bureau

California Supreme Court
538 P.2d 744 (1975)

Facts

Johansen (plaintiff) was injured in a collision and brought suit against the responsible driver, Dearing. During the litigation, Johansen offered to settle with Dearing’s insurer, California State Automobile Association Inter-Insurance Bureau (Bureau) (defendant), in the amount of the applicable policy limit: $10,000. Bureau refused the offer, asserting that the collision was not covered by the policy. Johansen then obtained a judgment against Dearing for nearly $34,000. A later proceeding established that the accident was covered by the insurance policy. The cause of action was assigned to Bureau for the portion of the judgment that Dearing did not pay. The trial court found in favor of Bureau. Johansen appealed. The California Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Tobriner, J.)

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