Westrec Marina Management, Inc. v. Arrowood Indemnity Co.

— Westrec Marina Management, Inc. (Westrec), appeals a judgment denying relief on its complaint against its liability insurer, Arrowood Indemnity Company (Arrowood), after a nonjury trial. Arrowood refused to provide a defense in an action against Westrec on the ground that Westrec had failed to timely report the claim as required under the terms of the two successive policies issued by Arrowood. Westrec contends it timely reported the claim and the trial court’s conclusion to the contrary was error. We hold that the court correctly decided that a letter from the third party claimant’s attorney to Westrec was a “claim” within the meaning of the policies, that the later action filed by the third party claimant constituted the same claim, and that Westrec’s failure to timely report the claim after receiving the letter rendered its later notice of claim untimely. We therefore affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

1. Factual Background

Arrowood, then known as Royal Indemnity Company, issued a directors and officers liability insurance policy to Westrec effective from July 1, 2002, to July 1, 2003, and issued a second policy effective from July 1, 2003, to…