Oak Park Calabasas Condominium Ass'n v. State Farm Fire & Casualty Co.

INTRODUCTION

Oak Park Calabasas Condominium Association (Oak Park) appeals from an adverse judgment in favor of State Farm Fire and Casualty Company (State Farm) following a court trial in which the court determined that State Farm’s policy of insurance with Oak Park offered no potential for coverage in the underlying action, leading the court to conclude State Farm did not breach its duties to defend or to indemnify Oak Park. For the reasons hereafter stated we affirm.

FACTUAL AND PROCEDURAL SYNOPSIS

Underlying litigation with ECC.

In January of 1994 the Northridge earthquake occurred. Oak Park structures suffered considerable damage. As a result, Oak Park made agreements with a construction company by the name of ECC to repair the damaged structures. Following several contractual modifications, Oak Park refused to pay the remaining amounts due under the contract. ECC recorded a mechanic’s lien on the Oak Park complex on June 1, 1995. In July 1995 ECC filed an action against Oak Park and the owners of the condominiums containing causes of action for breach of written contract, foreclosure of mechanic’s lien, reasonable value of services rendered, failure to release…