Tradewinds Escrow, Inc. v. Truck Insurance Exchange

Tradewinds Escrow, Inc. (Tradewinds) appeals summary judgment granted in favor of defendant Truck Insurance Exchange (Truck) in its action for breach of contract and breach of the covenant of good faith and fair dealing. Truck refused to defend a third party action against Tradewinds arising out of the failed sale of a home on the grounds the policy specifically excluded indemnity for actions based upon the furnishing of “escrow services,” and refused to pay pre-tender defense costs and settlement costs Tradewinds incurred in connection with defending the underlying action.

Tradewinds contends the trial court erred in finding Truck had no duty to indemnify and hence no duty to defend. Tradewinds contends the policy provides numerous grounds for indemnity, the professional services exclusion does not apply, it is entitled to pre-tender legal fees, Truck is required to indemnify it for both pre-tender and settlement costs; and triable issues of fact exist with respect to its punitive damages claim.

Factual Background and Procedural History

Tradewinds is Truck’s insured under a business owners insurance policy, which provided commercial property, commercial general…