Business Law Journal

Every insurance policy has a maximum limit on the dollar amount that the policy will pay for a covered claim.  Some policies also contain sublimits that apply to specific types of losses.  Policyholders may mistakenly believe that these sublimits are in addition to the primary coverage limits that are available under the policy.  In reality, sublimits restrict or cap the maximum dollar amount that a policy will pay for a risk that is subject to the sublimit, regardless of the total primary coverage amount listed in the policy. 

In Haun v. Pagano (Cal.App.4th, Feb. 18, 2026, No. D084385) 2026 WL 455372 (“Haun”), a California Court of Appeal recently analyzed the impact of a unilateral fee-shifting provision involving competing claims for financial elder abuse brought under the Elder Abuse and Dependent Adult Child Protection Act (codified as Welfare and Institutions Code §§ 15600, et seq.) In Haun, the Court of Appeal held that section 15657.5(a) does not bar an award of attorneys’ fees for defense work that overlaps entirely with the successful prosecution of the prevailing petitioner’s own financial elder abuse claim.