Judge: $3.3M Default Judgment 'Unreasonable,' 'Unenforceable' Against Insurer

SAN FRANCISCO - A California federal judge on March 27 entered final judgment in favor of a real estate errors and omissions liability insurer, finding that because claimants gained their right to sue the insurer through an assignment in a fraudulent settlement agreement with the insured, they have lost their standing to sue the insurer for the resulting $3.3 million default judgment (Ron Carlson, et al. v. Century Surety Co., No. C 11-00356 SI, N.D. Calif.; 2012 U.S. Dist. LEXIS 40986).

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