Chu

Appellants Hilbert Chu and KCOO Development Co., Inc. (collectively Chu) appeal from the judgment entered in favor of respondent Canadian Indemnity Company (Insurer) following an order granting Insurer’s motion for summary judgment. Chu contends the trial court erred in concluding that all of the damages for which Chu’s lawsuit sought coverage were merely further manifestations of the same defective condition already known to Chu before Insurer’s policy became effective. Because we conclude there are triable issues of material fact, we reverse the judgment.

I. Factual Background

Certain facts are undisputed. In late 1981, construction on a 26-unit condominium project was completed. KCOO was the developer of the project but did not participate in any of the actual construction. Hilbert Chu was the sole shareholder and president of KCOO.

On March 1, 1982, after completion of the project, Insurer issued a so-called “multi-peril policy” (the policy) to the project’s homeowners association. This policy provided both first party property coverage and third party liability coverage, and covered both KCOO and Chu as additional insureds. The policy remained in effect until July 1984.…