Miller v. Western General Agency, Inc.

In this action for breach of contract, bad faith and fraud, brought by the plaintiffs George J. Miller and Teresa L. Miller (the Millers) against the defendants Western General Agency, Inc., and Central-National Insurance Company (collectively Central-National), the trial court granted summary judgment in favor of Central-National. The Millers have appealed, claiming that Central-National wrongfully refused to provide them a defense under their homeowners policy when they were sued for misrepresentation and concealment allegedly committed in connection with the sale of their home.

We conclude that the third party claim asserted against the Millers was neither covered nor potentially covered under their homeowners policy. Therefore, Central-National owed them no duty to provide a defense and the trial court properly granted summary judgment on the complaint. We affirm the judgment.

Factual and Procedural Background

On October 21, 1986, Central-National issued a homeowners policy providing property and liability insurance to the Millers covering their home in the Simi Valley. The policy was in effect for two years, until October 21, 1988. On or about July 22, 1988, the…