Commercial Union Insurance v. Superior Court

—Petitioner, an insurance company defending a coverage action, challenges denial of its motion for summary judgment. Petitioner sought to show that its general business policy did not cover an intentional firing by the insured of one of his employees. We conclude that the court erred in interpreting the policy and in denying the motion.

Real party in interest is a licensed insurance agent, doing business as a sole proprietorship. He was sued for wrongful discharge by a former employee and the employee’s wife. He tendered the defense to petitioner, but petitioner denied coverage and refused to defend. Real party eventually settled the wrongful discharge action for $7,200 and brought this action against petitioner to recover the settlement cost and attorney fees and other defense costs.

Real party claims coverage under petitioner’s “office package policy.” Under that policy, petitioner will pay damages which are the result of “1. bodily injury, or flj] 2. property damage, [fl] caused by an occurrence, insured by this policy, and: . . . [1f] (b) arising from your business operations conducted at or from the insured premises.” Petitioner has the right and duty to defend the…