Hurley Constr. Co. v. State Farm Fire & Cas. Co.

Here we hold that an insurance company has no duty to defend a civil action charging the insured with participation in a conspiracy to engage in fraudulent billing practices. We reach this conclusion because the policy limited coverage to third party claims for bodily injury and damage to tangible property.

William Hurley, doing business as Hurley Construction Company (Hurley), appeals from a summary judgment entered in favor of respondent, State Farm Fire and Casualty Company (State Farm), on an action for breach of an insurance contract. Hurley contends the trial court erred when it found that the comprehensive general liability insurance policy issued by State Farm provided no coverage. We disagree and affirm.

Hurley was a general contractor who furnished insurance repair services to the owners of homes and businesses insured by Fireman's Fund Insurance Company (Fireman's Fund). Fireman's Fund filed suit against Hurley for fraud, negligent misrepresentation, and breach of contract based on the allegation that Hurley conspired with a Fireman's Fund property claims supervisor, Candido, and other contractors to overcharge for the repair and restoration of…