Ramco, Inc. v. PACIFIC INSURANCE COMPANY

This is an action by plaintiff to recover on a policy of products liability insurance issued to plaintiff by defendant for that purpose. Plaintiff is the manufacturer of electric baseboard heaters. When a claim was made against plaintiff for the malfunction of a number of its heaters that had been installed in a motel, defendant denied coverage of the claim. Plaintiff settled the claim and brought this action to recover. Plaintiff’s complaint alleged two causes of action; one for the actual loss plus an attorney’s fee; the second was for consequential loss of good will and credit. The trial…