Action Seeking Defense Premature Where Separate Rescission Action Is Pending

Rocklin Park Place Condos. Owners Ass’n v. Liberty Ins. Underwriters, Inc. (E.D. Ca., September 4, 2013)

The insurer in this case denied coverage under a commercial general liability policy, stating that the underlying claim took place before the policy was enacted. The insurer sought rescission of the policy based on a material misrepresentation in a different action. The policyholder brought a claim for breach of the duty to defend. The court held that because the insurer’s rescission action could void the policy, it was not the proper juncture for summary adjudication of the duty to defend.