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California Civil Procedure, Keyed to Levine, 6th Ed.
PLCM Group, Inc. v. Drexler
Citation:
22 Cal. 4th 1084, 95 Cal. Rptr. 2d. 198, 997 P.2d 511 (2000)Facts
David Drexler, an attorney, was insured under a professional malpractice insurance policy administered by PLCM Group, Inc., with liability carriers including Dearborn Insurance Company, Anglo-American Insurance, Ltd., and Generali S.P.A. London Branch. The policy contained a $20,000 deductible per claim and a reimbursement provision allowing the insurers to advance sums within the deductible and recover those amounts plus interest and attorney fees if the insured failed to reimburse after demand. When Drexler was sued for malpractice in January 1991, PLCM retained his selected law firm, Haight, Brown & Bonesteel, to defend him. By settlement in November 1991, Drexler had paid only $9,680 of his deductible, leaving a balance of $10,319.62 unpaid despite multiple demands. In October 1993, PLCM paid the outstanding amount and demanded reimbursement, which Drexler refused, claiming he owed nothing. PLCM filed suit in February 1994, and Drexler cross-complained alleging breach of contract, bad faith, and intentional infliction of emotional distress. After summary judgment was granted on the cross-complaint and Drexler refused settlement offers, trial commenced in January 1997 with PLCM represented by in-house counsel from its parent company, Aon Corporation. The jury returned a verdict for PLCM for the full amount, and PLCM sought attorney fees of $61,050 based on market rates.
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