James A. Richman This action was brought by plaintiff Parkwoods Community Association (Parkwoods) following the settlement of its earlier construction defect action arising out of the construction of the Parkwoods condominium development in Oakland. Parkwoods and CIGA agreed upon the amount that CIGA would pay Parkwoods if CIGA is required to pay the obligations of Reliance and the Reliance Insureds, and agreed that this declaratory relief action would be brought to resolve their dispute as to whether Parkwoods' claim is a "covered claim" within the meaning of Insurance Code section 1063. 1, subdivision (c)*fn1 that CIGA is obligated to pay. . . . 'CIGA issues no policies, collects no premiums, makes no profits, and assumes no contractual obligations to the insureds. 'Permitting Parkwoods to recover from CIGA in the present case would, in effect, sanction an indirect recovery that could not be obtained directly. The matter is remanded with instructions to vacate the judgment entered in favor of Parkwoods and to enter judgment in favor of CIGA.

Download full case here.