Appellants argue insurer notice and tendered complaints justify vacating short default

Michael Pazner, representing the appellants, told the panel that his clients provided notice to their insurer, forwarded the complaints and "indicated to the insurance company that they expect coverage and the defense." He argued that, under cases including Calhoun and White, courts have excused short defaults where a bona fide belief that the insurer would defend existed.

Pazner framed the key question as whether the insurer's conduct or the policyholder's reliance created a reasonable expectation of defense. He said the trial court misapplied the CR 55 standard when it required both excusable neglect and due diligence, and pointed to Sellers v. Longview as authority that good cause can be satisfied without that conjunctive test.