Richards

Appellants Linda and Thomas Richards sued Sequoia Insurance Company (Sequoia) for breach of contract and breach of the covenant of good faith and fair dealing, due to Sequoia’s delay in providing a defense and coverage for a wrongful death action tendered by the Richardses. The trial court granted summary judgment for Sequoia on the basis that the Richardses sustained no damages as a result of Sequoia’s alleged breach, and Sequoia acted reasonably when it referred the Richardses’ claim to coverage counsel before agreeing to defend them. We conclude there are no triable issues of material fact, and therefore affirm on the basis that the Richardses sustained no actionable damage.

FACTUAL AND PROCEDURAL BACKGROUND

The Richardses are owners of the Jack London Lodge, which was insured by Sequoia through a general liability policy that included liquor liability coverage. In December 2004, a 20-year-old patron was fatally injured in a single-car accident after leaving the Lodge’s bar, and the special administrator of her estate filed a complaint against the Richardses and the Lodge alleging she was negligently served alcohol that contributed to her death (the Morris lawsuit).…