Winther v. Valley Insurance

Defendant appeals from a judgment awarding plaintiff damages for an alleged breach of its duty to defend plaintiff in a lawsuit brought by Janice McCaffrey, her former business partner. We hold that defendant did not have a duty to defend the lawsuit and therefore reverse and remand for entry of an order granting defendant’s motion for summary judgment.

Plaintiff was formerly a partner in Divine Designs, a bridal store in Lake Oswego. In late 1990, she became involved in a dispute with McCaffrey, the other partner in the business. The dispute led to litigation in which McCaffrey and her…