Case Name: David Chang, et al. v. Taylor Woodrow Homes, Inc., et al.
Case No.: 1-15-CV-281394

This construction defect action arises from a broad range of alleged deficiencies in the design and construction of plaintiffs’ single-family homes in the Hawthorn Place/Hampton Park development in San Jose. (Complaint, ¶¶ 1, 28, 35.) Plaintiffs bring this action against the developers, contractor, subcontractors, material suppliers, and design professionals involved in the construction. (Ibid.)

Financial Pacific Insurance Company (“FPIC”) moves to intervene on behalf of cross-defendant F&K Associates, Inc. dba Signature Electric. FPIC argues it has a direct interest in the litigation because it issued a commercial general liability insurance policy to F&K, which is a suspended California corporation that lacks the capacity to defend itself. FPIC submits its proposed Complaint in Intervention.

The motion is not opposed.

Pursuant to Code of Civil Procedure section 387, “the trial court has discretion to permit a nonparty to intervene where the following factors are met: (1) the proper procedures have been followed; (2) the nonparty has a direct and immediate interest in the action; (3) the intervention will not enlarge the issues in the litigation; and (4) the reasons for the intervention outweigh any opposition by the parties presently in the action.” (Reliance Ins. Co. v. Superior Court (Wells) (2000) 84 Cal.App.4th 383, 386.) “An insurer’s right to intervene in an action against the insured, for personal injury or property damage, arises as a result of Insurance Code section 11580 [which] provides that a judgment creditor may proceed directly against any liability insurance covering the defendant, and obtain satisfaction of the judgment up to the amount of the policy limits.” (Ibid.) “Thus, where the insurer may be subject to a direct action under Insurance Code section 11580 by a judgment creditor who has or will obtain a default judgment in a third party action against the insured, intervention is appropriate.” (Id., pp. 386-387.)

Here, FPIC demonstrates an interest in this litigation based on underwriting the insurance policy of F&K, which is suspended and lacks the capacity to defend itself. The motion to intervene is GRANTED. FPIC is granted leave to intervene in this action and file the original Complaint in Intervention.