( January 21, 2026, 8:06 AM EST) -- SAN FRANCISCO — A federal judge in California adopted a magistrate’s report recommending that a $32,197.19 default judgment be entered against an insured in the insurer’s declaratory judgment lawsuit disputing commercial liability coverage for an underlying negligence lawsuit arising from $700,000 in stolen cannabis products, affirming the magistrate’s holding that the insurer has no duty to defend because the insurance policy does not cover theft....