Moskopoulos

Appellant Paris Moskopoulos appeals from a declaratory judgment determining that respondent Safeco Title Insurance Company (Safeco) has no duty to provide a defense to appellant in an action against him, described hereafter, and awarding to Safeco attorneys’ fees, costs, .expenses and interest in the amount of $14,294.45.

Appellant is a licensed real estate broker and has been engaged in the real estate business for many years. He has been involved in escrow transactions and is familiar with title insurance policies. In 1974 Bea Williams (Bea), a licensed real estate agent, sold certain property located on Mulholland Drive, Los Angeles, to Billy Paul and Blanche Williams (the Williamses), who resided in Philadelphia and rented the property to others after they purchased it. The Williamses were friends of but not related to Bea. The Mulholland property was improved with a four-bedroom home overlooking the San Fernando Valley.

In late 1977 or early 1978 Bea, then an employee of appellant’s company, Paris Realty Company, learned that the note secured by a first deed of trust on the Mulholland property was in default and the lender had recorded a notice of default. Bea…