Court Rejects 3rd-Party Negligence Claim in Ruling for Insurer

LOS ANGELES - A California appellate court has found for an insurer on the issue of efficient proximate cause despite homeowners' efforts to recover for contractor negligence after a misplaced drywall nail apparently led to a delayed, but significant water leak. Freedman v. State Farm Insurance Co., No. B202617 (Calif. Ct. App., 2nd Dist.).

California's Second Appellate District held May 5 that the circumstances mirrored those of Julian v. Hartford Underwriters Ins. Co. ([2005] 35 Cal.4th 747) in which the California Supreme Court said insurers are not prohibited "from drafting and enforcing policy provisions that provide or leave intact coverage …