Maryland Casualty Co. v. National American Insurance

In this declaratory relief action between successive third party liability carriers, National American Insurance Company of California (NAICC) appeals a summary judgment in favor of Maryland Casualty Company (Maryland) determining NAICC had a duty to defend its insured, developer Midway Homes, Inc., and related parties (Midway Homes), in underlying condominium construction defect litigation. NAICC contends (1) Maryland had no standing to enforce a duty owed their mutual insured and (2) the trial court erred in granting summary judgment because (a) Maryland alone was obligated to defend Midway Homes and (b) Midway Homes concealed property damages existing before NAICC’s policy period. We conclude the contentions are without merit and accordingly affirm the judgment.

Factual and Procedural Background

Midway Homes, builder of the 277-unit Lake Park Terrace condominium project, obtained third party liability insurance from Maryland between February 1977 and approximately August 1984, and from NAICC between July 21, 1984, and July 21, 1985. Coverage under the policies was triggered by an occurrence of property damages within the policy periods.

On October 21, 1991, the Lake…