On July 26, 2018, the United States District Court for the Southern District
of California granted O&N’s motion for partial summary judgment
holding that Fidelity and Deposit Company of Maryland (“Fidelity”)
breached its duty to defend O&N clients Black Mountain Center, L.P.
and Timothy Haidinger. Judge Jeffrey T. Miller ruled that that facts underlying
the state court action against the insureds gave rise to potential liability
for “wrongful eviction,” which was covered under the personal
injury provision of the Fidelity policy. The court rejected Fidelity’s
argument that coverage for “wrongful eviction” applied only
to cases involving actual eviction, rather than constructive eviction.
Click here to read the Court's ruling.