Dollar Point Assoc., Inc. v. United States Liability Ins. Co.

UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA 10 DOLLAR POINT ASSOCIATION, INC., No. 2:22–cv–0995–KJN Plaintiff, v. ORDER UNITED STATES LIABILITY

INSURANCE COMPANY,

15 Defendant.

17 Dollar Point Association, Inc., (“Dollar Point”), a homeowners’ association, sued United States Liability Insurance (“USLI”), its non-profit professional liability insurer, for breach of contract and breach of the implied covenant of good faith and fair dealing after USLI withdrew defense coverage in a third-party suit (the “Harris Action”). (Complaint, ECF No. 1.) The parties moved for summary judgment on the following question: Did the non-profit professional liability insurance policy require USLI to defend Dollar Point in the Harris Action? USLI contends it had no duty to defend Dollar Point for two reasons. First, the Harris Action was not a claim for a “wrongful act” within the meaning of the insurance policy. (USLI Memorandum, ECF No. 14-1 at 14-18.) Second, the Harris Action did not fall within the…