Facts

Paul Terrell and Rica Tseng sued State Farm General Insurance Co. involving a contractual dispute.

PLAINTIFFS' CONTENTIONS: Plaintiffs purchased the subject property in 2000. Defendant insured the property. In 2014, Mary and Pamela Fitzgerald filed a lawsuit was filed against plaintiffs, seeking damages arising out of plaintiffs' ownership and maintenance of the rental property. Plaintiffs tendered the lawsuit to defendant, but defendant denied coverage. Ultimately, plaintiffs settled the underlying dispute and filed this lawsuit against defendant, alleging causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing.

DEFENDANT'S CONTENTIONS: Defendant contended that the homeowners' insurance issued to plaintiffs covered losses arising from plaintiffs' use of the property while they lived there and not for losses arising from their rental of the property to others. Hence, plaintiff's tender was properly denied. Defendant moved for summary judgment.

Damages

Plaintiffs sought more than $700,000 in damages.

Result

The court granted State Farm's summary judgment motion.