California, United States of America
The following excerpt is from White v. Western Title Ins. Co., 221 Cal.Rptr. 509, 40 Cal.3d 870, 710 P.2d 309 (Cal. 1985):
[40 Cal.3d 896] Recently, in In re Marriage of Flaherty (1982) 31 Cal.3d 637, 183 Cal.Rptr. 508, 646 P.2d 179, we had occasion to consider guidelines for determining whether an appeal is frivolous and warrants imposition of sanctions. We observed that a balance must be struck between avoiding improper conduct and assuring that attorneys are free actively to assert their clients' interests. To this end we reiterated the principle that " 'Free access to the courts is an important and valuable aspect of an effective system of jurisprudence, and a party possessing a colorable claim must be allowed to assert it without fear of suffering a penalty more severe than that typically imposed on defeated parties.' (Young v. Redman (1976) 55 Cal.App.3d 827, 838 [128 Cal.Rptr. 86].)" (31 Cal.3d at p. 648, 183 Cal.Rptr. 508, 646 P.2d 179.) The majority's holding in this case imposes just such a restraint upon an insurer's right to present a defense.
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