Pepperell
Pepperell v. Scottsdale Insurance
Opinion
Opinion
Sonenshine, J.
James Pepperell and Pepperell Enterprises, Inc. (collectively Pepperell, except where individual identification is necessary) appeal from a summary judgment in favor of Scottsdale Insurance Company (Scottsdale) in an action alleging the insurer’s breach of its duty to defend and indemnify its insured against third party claims.
Factual and Procedural Background
Pepperell Enterprises, Inc., an Orange County developer, designed and built a single-family residence in Emerald Bay, Laguna Beach. Construction was completed in November 1988. Armando Nila purchased the home. During the rainy winter and spring seasons of 1991, severe leakage occurred throughout the residence.
Nila spent more than $300,000 to correct the problems. In November 1992, he sued Pepperell Enterprises, Inc., asserting six causes of action based on alleged design and construction defects, as follows: “a. Defective roof design and construction, including flashing, caulking, weatherproofing and window installation leading to numerous leaks throughout the Residence; [ft] b. Defective painting and plastering throughout the interior and exterior of the Residence; [ft] c. Defective design and construction of…