Tendering a Claim Before Requesting Declaratory Relief: A California Perspective

In the world of insurance defense litigation, the nuances of when and how an insured must tender a claim or an insurer may request declaratory relief can have substantial implications. Understanding the complexities of these actions is essential for insurers, insureds, and legal professionals engaged in insurance matters.

The Importance of Tender

In California, a tender is the formal presentation of a claim to an insurer, essentially asking the insurer to defend or indemnify against a particular loss. It triggers the insurer's duty to investigate the claim and respond appropriately.

Declaratory Relief: An Overview

Declaratory relief is a legal process through which an insurer or insured seeks a judicial determination of their rights and obligations under an insurance policy. It's a way to resolve uncertainties, often related to coverage, before further legal action takes place.

The Intersection of Tender and Declaratory Relief

Under California law, an insured is generally required to tender a claim to the insurer as a prerequisite for the insurer's duty to defend or indemnify. But does an insured have to tender before an insurer requests declaratory relief against the insured?

The answer to this question is nuanced, depending largely on the specific facts of the case and the terms of the insurance policy.

1. Insurer's Request for Declaratory Relief Without Tender

California courts have held that an insurer may seek declaratory relief without the insured first tendering a claim, especially if there are uncertainties or disputes regarding coverage. This step allows the insurer to clarify its responsibilities and obligations under the insurance policy before the insured formally tenders the claim.

2. Importance of Policy Language and Facts of the Case

The specific policy language and facts of the case may also influence the interaction between tendering and declaratory relief. Certain policy terms or unique situations may necessitate or obviate the need for tender before declaratory relief is sought.

Conclusion

The interplay between tender and declaratory relief under California law is complex and requires expert legal guidance. At Straus Meyers, our deep understanding of California's insurance law allows us to navigate these complexities, ensuring that the rights and interests of our clients are robustly protected.

Whether you are an insurer seeking to understand your obligations or an insured navigating the claims process, our team of skilled coverage counsel is here to assist you. Reach out to us at Straus Meyers to discuss your specific situation, and let our expertise in insurance defense guide you through these intricate legal waters.