Val's Painting And Drywall Inc. V. Allstate Insurance Co‪.‬

Respondent Val's Painting and Drywall, Inc. (Val's), filed an action in municipal court against appellant Allstate Insurance Company (Allstate). Allstate filed an amended cross-complaint seeking relief beyond the jurisdiction of the municipal court and the matter was transferred to superior court. The superior court sustained Val's demurrer to the amended cross-complaint without leave to amend, entered an order of dismissal of the amended cross-complaint (Code Civ. Proc., § 581, subd. 3), and remanded the matter to the municipal court. Allstate appeals from the judgment of dismissal. (Code Civ. Proc., § 581d; Keenan v. Dean, 134 Cal. App. 2d 189, 191-192 [285 P.2d 300].) The dispute concerns the duty of Allstate to defend Val's against a third party claim under the terms of an insurance policy and whether Allstate can assert noncoverage as a ground for reimbursement from Val's for settlement of that claim.