Magnolia Square Homeowners Ass'n v. Safeco Insurance

Magnolia Square Homeowners Association appeals after summary judgment was granted in favor of Safeco Insurance Company of America. We conclude that summary judgment was properly granted because MSHA’s claim for losses incurred due to structural defects was barred by the 12-month limitation period set forth in the Safeco all-risk property insurance policy. The judgment is therefore affirmed.

Facts and Procedural Background

Magnolia Square is a 32-unit residential condominium complex located in Mountain View, California. Each unit owner is a member of Magnolia Square Homeowners Association (MSHA).

Safeco Insurance Company provided coverage for MSHA under an all-risk property insurance policy. The coverage commenced on September 1, 1979, and was renewed on an annual basis until September 1, 1986.

In early 1978, Magnolia Square experienced extensive water leakage problems and began negotiating with the developer of the complex regarding repairs. In 1981, MSHA retained Walter Gloskowski, a civil engineer, to examine the building for possible construction defects. Gloskowski’s report documented several problems including (1) absence of building paper; (2) improper…