[U] Corta Madera Homeowners Association v. Usf Insurance Co‪.‬

USF Insurance Companys insureds were sued by the Corta Madera Homeowners Association (HOA) for construction defects, and the insureds tendered defense of those claims to USF. When USF did not appoint defense counsel for each insured, the insureds brought a declaratory judgment action against USF. USF did not appear in this action. A default judgment was entered, stating that USF was liable for any settlement entered into by the insureds in the construction defect action. The insureds entered a settlement eight months later, and inter alia assigned their claims against USF to the HOA. Two months after that, USF moved to vacate the default judgment, but its motion was denied. USF also requested discovery regarding the settlement to determine if it was the product of fraud or collusion, but its discovery motion was denied. Because USF failed to establish a prima facie defense to the declaratory judgment action, we affirm the trial courts denial of USFs motion to vacate. We also affirm the trial courts denial of USFs discovery request because USF did not rebut the reasonableness finding below.