Plaintiff appealed summary judgment entered by the Ventura County Superior Court (California) granted in favor of defendant insurance company in action for breach of contract and bad faith.

Overview

A homeowners’ association sued plaintiff Salmon Norway, Inc. consultant for giving bad advice about re-roofing materials. Plaintiff tendered defense under his commercial general liability insurance policy from defendant insurer, which refused to defend because the policy did not cover alleged professional malpractice. Plaintiff settled the suit with the homeowners’ association and sued defendant for breach of insurance contract and bad faith. Trial court entered summary judgment for defendant, and plaintiff appealed. The court affirmed, finding that, under the policy, plaintiff was insured only against certain, limited claims occurring when he conducted business, and he was not covered for errors or omissions in giving professional advice. The policy provided only limited coverage for damages resulting from accidents causing bodily injury or property damages. Defendant had no duty to defend against the allegations made against plaintiff.

Outcome

Summary judgment affirmed; under the commercial general liability policy, plaintiff was insured only against certain, limited claims occurring when he conducted business, and he was not covered for errors or omissions in giving professional advice.