Whispering Oaks Residential Care Facility v. Travelers Property etc. CA6

I. BACKGROUND

A. The Operative Third Amended Complaint Plaintiffs alleged as follows. In 2008, Cricket Communications Inc. (Cricket) leased space on a water tank owned by Whispering Oaks Health Care Center Inc. “for the transmission and reception of radio communication signals” and related “facilities” and “equipment” that Cricket would “install and maintain.” The lease required Cricket to secure commercial general liability insurance in an aggregate amount of $1 million, which could be satisfied by an endorsement on Cricket’s master policy. Whispering Oaks Health Care Center Inc. assigned the lease to Whispering Residential and Whispering Management. Chaganti is the “sole owner, member, officer and shareholder” of Whispering Residential and Whispering Management. Cricket was insured under a commercial general liability insurance policy from Travelers. The policy included a Technology Xtend endorsement that covered plaintiffs as Cricket’s landlord. In January 2010, a water pipe froze. The incident caused substantial loss to plaintiffs’ property and business and led to numerous civil proceedings and criminal investigations. Plaintiffs made a claim to Cricket, which referred…