Reichert v. General Ins. Co

In Reichert v. General Ins. Co. (1968) 68 Cal.2d 822, the plaintiff in an insurance bad faith case admitted in his initial, unverified pleading that he had filed for bankruptcy prior to filing his complaint. In later pleadings, however, he conveniently omitted mention of the bankruptcy. It did not work. Because he had made no attempt to show his admission of the bankruptcy was the product of some sort of mistake or inadvertence, he was stuck with the admission. (Id. at p. 837.) In sum, the plaintiff admitted his bankruptcy in his original complaint hoping to finesse that fact by a spin on causation: As Justice Peters noted in his dissent, the plaintiff alleged the bankruptcy was merely part of a causal chain leading to his damages so as to prevent his causes of action from vesting in the trustee in bankruptcy. (See Reichert, supra, 68 Cal.2d at p. 839, fn. 1 (dis. opn. of Peters, J.).) While the majority rejected that point on the merits, it is significant that no one questioned the propriety of treating the original complaint's admission of bankruptcy as an admission. (Id. at pp. 839-841.)