Business Law Journal

In Magic Carpet Ride LLC, et al. v. Rugger Investment Group, LLC, the California Court of Appeal recently reversed a trial court’s decision to grant summary adjudication on a breach of contract claim where the defendant was eight days late in depositing a required lien release.   Even though the contract stated that “time is of the essence” and the late deposit violated the strict terms of the contract, the Court of Appeal clarified that it could be considered substantial performance, creating a triable issue of material fact which made summary adjudication improper.

Several recent decisions have addressed the applicability of California Code of Civil Procedure § 425.16, known colloquially as the “anti-SLAPP” law, which provides a procedure by which a defendant can secure the early dismissal of lawsuits that are filed primarily to discourage the free exercise of speech and petition rights.  Under the anti-SLAPP law, defendants are permitted to file a special motion to strike claims “arising from any act…in furtherance of that person’s right of petition or free speech.” 

Liability insurance policies typically provide two forms of coverage:  (1) coverage for the defense of lawsuits alleging claims covered by the policy in question, and (2) coverage for the settlement of claims covered by the policy in question that the insurer and the insured agree to for payment of a judgment against the insured when a judgment is the result of a covered claim against the insured.