McMillin Mgt. Services v. State Farm Gen. Ins. CA4/1

I.

INTRODUCTION

State Farm General Insurance Company (State Farm) issued a contractor's policy

(the State Farm Policy) to DeLeon Enterprises (DeLeon), a company that installs rain

gutters. DeLeon entered into a subcontract with appellant and general contractor,

Central Valley Residential Builders, LP (Central Valley), to install rain gutters on

residences that Central Valley was constructing. As required by the subcontract, DeLeon

procured additional insured endorsements on the State Farm Policy in favor of Central

Valley and various related entities, including appellants McMillin Management Services,

LP and Bakersfield Residential Builders, LP. The subcontract named McMillin

Management Services, LP as the "project manager" with respect to the construction of the

residences and indicated that Central Valley is a "Corky McMillin Company."

A group of homeowners filed a construction defect lawsuit against McMillin.

After State Farm refused McMillin's request to defend it in the construction defect

lawsuit, McMillin brought this action against State Farm, asserting claims for declaratory

relief, breach of contract, and breach of the covenant of good faith and…