Verdicts and Settlements

April 29, 2011

Daily Journal

SUMMARY JUDGMENT: Defense.

CASE / NUMBER: Arrowpoint Capital Corp., successor in interest to Royal Insurance Company of America, a Delaware Corp. v. National Union Fire Insurance Company of Pittsburgh, PA, a Pennsylvania Corp., Burlington Insurance Company, a North Carolina Corp., and Does 1 through 10 / A568539.

COURT / DATE: Clark County District, Nevada / Jan. 14, 2011.

ATTORNEYS: Plaintiff - Robert J. Scott (McCurdy & Fuller, LLP, Menlo Park) for third-party plaintiff National Union Fire Insurance.
Defendant - Carolyn A. Mathews, Michael J. Nunez, Jean M. Lawler (Murchison & Cumming, LLP, Los Angeles) for Mid-Century Insurance.

FACTS: Mid Century Insurance Co. insured Sunstate Landscape & Lawn, which was a landscape subcontractor for Falcon Development on four large condominium projects in Las Vegas, Nevada. Mid Century issued endorsements on Sunstate's policies, which named Falcon as an additional insured, and limited coverage for Falcon to property damage that occurred in Sunstate's "ongoing operations." Thus, there was no completed operations coverage under the policy for Falcon. National Union Fire Insurance Co. of Pittsburgh was Falcon's insurer. When owners and homeowners associations of the condominium developments sued Falcon on construction defect claims, Arrowpoint Capital Corp. defended and indemnified Falcon. Later, Arrow filed an action against National Union, seeking indemnity and contribution. National Union then filed a third party complaint against Mid Century.

DEFENDANT'S CONTENTIONS: Mid Century argued that the claims alleged against Falcon in the construction defect litigation were not covered under Sunstate's policy. It argued that the damage involved did not happen during Sunstate's "ongoing operations."

RESULT: The court granted summary judgment to Mid Century on National Union's cross-complaint against it.