Sensation Leather, Inc. v. CA Ins. Guarantee Assn.
Appellant Sensation Leather, Inc. (Sensation) suffered damage to its inventory at the hands of entities insured by an insolvent Arizona insurance company. After obtaining a judgment in California against the tortfeasors in 1999, Sensation successfully obtained recovery of the judgment from the insurance companys receiver in an Arizona proceeding. Sensation also sought to recover postjudgment interest for the period between 1999 and the date of the Arizona judgment. The Arizona Court of Appeals held, however, that Sensation could not recover postjudgment interest. The issue presented is whether Sensation can recover from respondent, California Insurance Guarantee Association (CIGA), postjudgment interest denied by the Arizona court. Resolution of this issue turns on whether the postjudgment interest sought by Sensation constitutes a covered claim under Insurance Code section 1063.1, subdivision (c)(1)(A) (section 1063.1(c)(1)(A)). Court conclude it does not and affirm the trial courts order sustaining CIGAs demurrer to Sensations complaint.