How much quota are you trying to grant the database? If it's over the default (or your database later grows to be more that what you requested) and you have not implemented WebChromeClient.onExceededDatabaseQuota
then you will get this error.
Also please ensure that the path to the database file is set to somewhere that your app has permission to access with WebSettings.setDatabasePath
[2]
[1] http://developer.android.com/reference/android/webkit/WebChromeClient.html#onExceededDatabaseQuota(java.lang.String, java.lang.String, long, long, long, android.webkit.WebStorage.QuotaUpdater)