Facts

In November 2018, Michael and Anne Harris filed suit against Dollar Point Association, Inc., their homeowners' association, in Placer County Superior Court, seeking declaratory relief and to quiet title. Dollar Point held a non-profit professional liability insurance policy with United States Liability Insurance. Dollar Point filed a claim for defense coverage in the Harris Action, which USLI denied. Dollar Point then filed suit against USLI.

PLAINTIFF'S CONTENTIONS: The plaintiff contended that the defendant breached their contract and breached the implied covenant of good faith and fair dealing by denying its claim for defense coverage under the insurance policy it held from the defendant.

DEFENDANT'S CONTENTIONS: The defendant denied any wrongdoing or liability. Moreover, the defendant contended that it had no obligation to provide coverage to the plaintiff because the policy only covered actions seeking to recover a "loss," which was defined under the policy as damages, and the Harris Action was not seeking damages.

Result

The court granted summary judgment in favor of the defendant.

Other Information

Plaintiff has appealed the grant of summary judgment.