General Accident Ins. Co. v. West American Ins. Co

In General Accident Ins. Co. v. West American Ins. Co. (1996) 42 Cal. App. 4th 95, the underlying plaintiff managed an insurance agency and leased the premises occupied by the agency. ( Id. at p. 99.) After the partnership entities (the insureds) terminated his contract and " 'ousted' " him from the premises, the plaintiff sued the insureds alleging wrongful termination, breach of contract, and tortious interference. ( Id. at pp. 99-100.) The insureds tendered the claim under two insurance policies. ( Id. at pp. 100-101.) The first policy provided coverage for "injury arising out of 'wrongful entry or eviction, or other invasion of the right of private occupancy' committed in the conduct of the insured's business." ( Id. at p. 103.) The General Accident court found there was coverage under this provision because the insured invaded the injured party's right of private occupancy. ( Id. at p. 104.) In so concluding, the court noted in dicta that the phrase " ' "other invasion of the right of private occupancy" ' " did not require a physical invasion of an interest in real property. (Ibid., ) The second insurance policy provided coverage for personal injury arising out of " 'wrongful entry into, or eviction of a person from, a room, dwelling or premises that the person occupies . . . .' " (General Accident, supra, 42 Cal. App. 4th at p. 104.) Stating that this provision "narrows the definition of this particular offense" to " 'some physical act of eviction or entry upon premises,' " the court found a potential for coverage under this policy, emphasizing that the third party plaintiff's complaint alleged that the insured entities had "ousted" him from the property and interfered with his right to occupy the premises. ( Id. at pp. 104-105.)