Havstad

Thomas and Laura Havstad appeal from a judgment entered in favor of respondent, Fidelity National Title Insurance Company (Fidelity), after the trial court granted Fidelity’s motion for summary judgment. The Havstads’ complaint, containing causes of action for breach of insurance contract and breach of the covenant of good faith and fair dealing, alleged that Fidelity had breached its duty to defend under a policy of title insurance. Appellants now contend that the trial court erred in granting Fidelity’s motion for summary judgment by applying an unduly narrow construction to the policy and to respondent’s duty to defend under it. We hold the trial court did not err in concluding that Fidelity had established that no potential for coverage existed under the policy, a showing which the Havstads failed to rebut. We therefore affirm the entry of judgment.

Factual and Procedural Background

In May 1989, the Havstads purchased five parcels of real property in the Rolands subdivision in Sonoma County and obtained a California Land Title Association (CLTA) policy of title insurance from Fidelity, insuring their title in the parcels. Included among the five parcels were two…