Actual Possession Not Required in Personal and Advertising Injury Coverage Dispute

The Insurer moved for summary judgment on a breach of contract and breach of the implied covenant of good faith claims made by the insured. The dispute over coverage centered around part of the definition of personal and advertising injury as found in the CGL form. This case is Sell v. Nationwide Mutual Insurance Company, 2010 WL 4720882 (E.D.Cal.).

Sell is a trustee and beneficiary under the trust of Nancy Muhs. The trust includes real property located in Stockton. As a beneficiary, Sell was entitled to reside at the property and to eventually own the property free of the trust if she complied with certain trust terms. Specifically, the trust required Sell to commence residing on the property within ninety days of being offered possession, and to reside and maintain her principal residence at the property for a five year period.