In 1996, the Second District Court of Appeal, in a case Paper Savers, Inc v. Nacsa (1996) 51 Cal. App. 4th 1090, the business location of Tom’s Client was completely destroyed by a fire.  The Client had only $500,000 in contents coverage and was under-insured by over $2,000,000.  With some ingenuity, Tom, claimed that his Client was owed more than the policy limits due to misrepresentations made by the Client’s insurance agent.   Before this case, insurance company’s limits of liability were strictly limited to the actual policy limits.  Eventually, this case was settled for more than $950,000.

This case is an example of a trailblazing case in the area of expanding an insured’s right under an insurance policy.  This case has been cited in several legal treatises and has allowed other attorneys to obtain earthquake coverage for many of their Clients for damages caused by the 1994 Northridge earthquake, when their insurance policies did not contain any coverage for earthquake damage.  

There is no greater contribution an attorney can make in his career, than helping to create a “new” area of the law.

There is no greater contribution an attorney can make in his career, than helping to create a “new” area of the law.