Appellant contractor challenged an order

Procedural Posture

Appellant contractor challenged an order of the Superior Court of San Diego County (California), which entered judgment in favor of appellee land value insurance company in the contractor's suit for breach of contract after the land value insurance company repudiated its agreement to issue insurance policies on various parcels of land that the contractor bid on for street work. The trial court found the insurance was not land value insurance.

Overview: corporate attorney definition

A contractor negotiated with a land value insurance company for the issuance of insurance policies on various parcels of land that the contractor was to bid on for street work. The contractor was awarded the contract but the insurance company repudiated its agreement and the contractor was compelled to default. The contractor brought an action for breach of contract. The trial court found for the contractor on all issues, however judgment was entered for the insurance company because the trial court held that the form of insurance agreed upon was not land value insurance and therefore was beyond the corporate powers of the insurance company. The contractor appealed and the court affirmed. The court held that the parties actually executed an agreement for insurance of the payment of the principal and interest installments of bonds, not land value insurance. Therefore the agreement was beyond the statutory, as well as the charter, powers of the insurance company.

Outcome

The court affirmed an order of the trial court which entered judgment in favor of a land value insurance company in a contractor's action for breach of contract after the land value insurance company repudiated its agreement to issue insurance policies on various lots of land that the contractor bid on for street work, based on the finding that the form of insurance was not land value insurance.