Sterling Builders, Inc. v. United National Insurance

Third party claimants sued an insured under a commercial general liability policy contending the insured had lied about its intentions to perform certain acts in return for the claimants granting it an easement over their property. The insured tendered the defense to its insurer; the latter refused to defend. We agree with the trial court that such a claim is not insured under a clause covering “wrongful entry or eviction or other invasion of the right of private occupancy.” In affirming the judgment, we acknowledge that a dictum in this court’s opinion in General Accident Ins. Co. v. West American Ins. Co. (1996) 42 Cal.App.4th 95, 104 [ 49 Cal.Rptr.2d 603 ], to the effect that a “noninvasive interference with the use and enjoyment of property” may constitute an “other invasion” under such an insuring clause, is erroneous.

Facts

Joseph Caldwell and his wife sold 19 acres in the Chino Hills to Sterling Builders, Inc. Sterling intended to develop the property. In return for the land, the Caldwells received about $2.7 million, $500,000 in cash and the remainder in the form of a promissory note. About the same time, Sterling bought a six-acre parcel located adjacent to the…