“No Good Deed Goes Unpunished,” Appellate Court Quotes.
After acknowledging that both parties to the appeal do good deeds, the appellate court in New Life in Christ Full Gospel Church Corp. v. L.A. Regional Food Bank, Case No. B232701 (2d Dist., Div. 7 Dec. 27, 2012) (unpublished) observed “[b]ut it seems no good deed goes unpunished,” quoting from Wright v. Beverly Fabrics, Inc., 95 Cal.App.4th 346, 348 (which in turn, attributes the quote to Claire Boothe Luce).
So what good deed was punished? Here are the facts
A New Life volunteer tripped at Foodbank’s warehouse and filed a premises liability action against Foodbank (but not New Life). New Life refused tender of volunteer’s complaint as far as defending Foodbank, which responded by filing a cross-claim for indemnity based on a contract with indemnity and duty to defend provisions in Foodbank’s favor. After volunteer and New Life settled and a voluntary dismissal was filed as to volunteer’s complaint against Foodbank (likely, the “good deed”), cross-complainant Foodbank then prosecuted its cross-claim against New Life. Foodbank was awarded $62,055.19 in damages (fees and costs in defense of the volunteer action) for New Life’s failure to provide a defense pursuant to the contractual duty to defend provision.
Judgment affirmed.
The duty-to-defend clause was broad, even broader than those in germane cases finding similar recovery allowable. (See, e.g., Crawford v. Weather Shield Mfg., Inc., 44 Cal.4th 541 (2008); UDC-Universal Development, L.P. v. CH2M Hill, 181 Cal.App.4th 10 (2010).) Also, the reviewing court rejected application of the active-passive negligence classification to “duty to defend” agreements.
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