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Southern District Grants O&N Motion Finding That Fidelity and Deposit Company of Maryland Breached its Duty to Defend


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.