Shilo Inn, Seaside Oceanfront v. James Grant

MEMORANDUM

Shilo Inn, Seaside Oeeanfront, LLC, appeals from the judgment entered in favor of Maryland Casualty Company. After James Grant negligently installed granite tub surrounds on Shilo’s property, Shilo obtained an arbitration award and civil judgment against Grant. Shilo then filed this garnishment action against Maryland Casualty, which had issued Grant a commercial general liability insurance policy in effect at the time of Grant’s faulty work. The district court granted Maryland Casualty’s motion for summary judgment. We affirm.

Under the insurance policy, Maryland Casualty agreed to “pay those sums that the insured becomes legally obligated to pay as damages because of ... ‘property damage’ to which this insurance applies.” The insurance applies only if the “ ‘property damage’ occurs during the policy period.” “Property damage” is defined as “[pjhysical injury to tangible property.” Thus, to trigger coverage, Shilo was required to show physical injury to tangible property occurring during the policy period. See St Paul Fire & Marine Ins. Co. v. McCormick & Baxter Creosoting Co., 324 Or. 184 , 923 P.2d 1200, 1210 (1996) (“If property is injured during the policy…