Court of Appeal Upholds GG&B Coverage Victory
State Farm v. Lam, California Court of Appeal, Case No. B202888

Mimin Mintarsih, a young Indonesia woman, sued State Farm’s policyholders, Dennis Lam and Dina Lam, for false imprisonment and Labor Code violations arising from Mintarsih’s forced employment as the Lam’s domestic servant. At trial she was awarded a judgment against the Lams for damages, statutory penalties and attorney’s fees totaling over $1.5 million.

State Farm, represented by Mr. Baratta, filed an insurance coverage action to determine if any part of the judgment was covered under State Farm’s homeowners and umbrella policies issued to the Lams. At trial, Mr. Baratta successfully argued that State Farm’s policy did not provide coverage for the more than $800,000 in attorneys’ fees awarded to Mintarsih. The court held that the State Farm policies covered only $87,000 of the $1.5 million total.

On appeal, in a 21-page published opinion the California Court of Appeal upheld the trial court’s finding that that the $800,000 in attorney’s fees was not covered. The Appellate Court also reversed the trial court’s finding that State Farm was liable for the $87,000 portion of the judgment. State Farm was not required to pay any part of the $1.5 million judgment.