BAROCO WEST, INC. v. Scottsdale Ins. Co.

Baroco West, Inc. (hereafter Baroco), a construction company, sued its insurance carrier, Scottsdale Insurance Company, for failing to defend it in a homeowners' action for negligent construction of a private residence. Based on the terms of policy, including the policy period and the exclusionary provisions, the trial court granted Scottsdale's motion for summary judgment. On appeal, Baroco claims the trial court erred in granting the motion for summary judgment because Scottsdale failed to establish that there was no potential for coverage.

We conclude that, based on the policy period, the relevant policy provisions, the homeowners' complaint, and Baroco's admissions, there was no potential for coverage under the policy and, hence, no duty to defend in the third-party action. We affirm the trial court's judgment.

In April or May of 1995, Baroco (dba Highpoint Construction) began construction of a private residence for Gary T. Charlebois and Lori L. Charlebois. On July 1, 1998, the Charleboises brought an action against Baroco for various causes of action, including breach of contract and negligence. In their complaint, the Charleboises alleged that, although the…