Bethel, Judge.Charles and Alberta Taylor (collectively, the Taylors) appeal from a trial court’s order granting State Farm Fire and Casualty Company’s motion for summary judgment. The Taylors contend the trial court erred in finding that they failed to provide timely notice of their claim to State Farm, and that State Farm had reasonable grounds for denying their claim and therefore was not motivated by bad faith. For reasons explained below, we affirm. Summary judgment is proper if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Summary judgments enjoy no presumption of correctness on appeal, and an appellate court must satisfy itself de novo that the requirements of OCGA § 9-11-56 (c) have been met. In our de novo review of the grant or denial of a motion for summary judgment, we must view the evidence, and all reasonable inferences drawn therefrom, in the light most favorable to the nonmovant.
Plantation Pipe Line Co. v. Stonewall Ins. Co., 335 Ga. App. 302, 302 (780 SE2d 501) (2015) (citations and punctuation omitted).Underlying Dispute The record reflects that the Taylors own a home in Fulton County that is subject to certain protective covenants governed by Regency Oaks Neighborhood Association, Inc. (the Association). From 2011 until February 2014, Alberta Taylor served on the Regency Oaks Advisory Committee (the Committee) and held a treasurer position within the Committee.[1] As part of her service to the Committee, Alberta Taylor would send mass email bulletins to the entire community using an email address she created as a sub-account connected to her personal email address. In February 2014, the board of directors formally transitioned from a developer-managed board to a board managed entirely by homeowners in the community (hereinafter “the Board”). The Committee was dissolved upon the formation of the Board, and Alberta resigned from the Committee and elected not to run for a position on the newly formed Board.The Board asked that Alberta provide them with the login credentials for the email account she previously used as a member of the Committee to communicate with homeowners. Alberta explained to the Board that she would not turn over access to the email account because doing so would also surrender access to her personal account. Moreover, Alberta informed the Board that she deactivated the email account shortly after the Board was formed and her service on the Committee had ended. In response, the Board suspended the Taylors’ voting rights and access cards to community amenities, and it levied a $25 per day fine against the Taylors that constituted a lien on their property[2]. In September 2014, the Taylors filed suit against the Association arising out of the Board’s actions for breach of contract, breach of fiduciary duty, equitable relief, punitive damages, and attorney fees in the Superior Court of Fulton County. More specifically, the Taylors alleged that the fines and sanctions imposed by the Board were unenforceable and in violation of the Association’s governing documents. In October 2014, the Association filed its answer and counterclaims alleging, inter alia, that Alberta’s refusal to grant the Board access to the email account breached numerous duties owed in connection with her service on the Committee.The PolicyThree months after the Board was established and Alberta resigned from the Committee, State Farm Fire and Casualty Company issued a business owners policy with an effective period of May 2014 to May 2015 to the Association (“Policy”). The Policy included a directors and officers liability endorsement providing State Farm would “pay those sums the insured becomes legally obligated to pay as damages because of a wrongful act to which this endorsement provides.” As a general condition under the Policy, Section II, Para 3 (b) – (c) provide that “if a claim or suit is brought against an insured,” the insured is obligated to notify State Farm “as soon as practicable” with copies of any “demands, notices, summonses or legal papers received in connection with the claim or suit[.]“Having learned about the Policy after filing suit, in January 2015 the Taylors sent a letter to State Farm notifying it of their lawsuit against the Association. The letter stated in part: It has come to my attention that the Regency Oaks Neighborhood Association has liability coverage with State Farm Insurance and that you are likely unaware of this case. Enclosed, please find a copy of the Complaint filed against your Insured. Please take this letter as notice of a claim.
