Unionamerica Insurance v. Fort Miller Group, Inc.

ORDER DENYING PLAINTIFF’S MOTION FOR SUMMARY ADJUDICATION

Plaintiff Unionamerica Insurance Company (“Unionamerica”) has moved for summary adjudication on its first and second causes of action, on the basis that it is entitled to rescind the Commercial General Liability Gap Insurance policies (“CGL gap policies”) it issued in 2000 and 2001 to defendants The Fort Miller Group, Inc. (“Fort Miller”) and its subsidiary Beeche Systems Corp. (“Beeehe”)- Unionamerica contends that Fort Miller failed to disclose in its CGL gap policy applications the nature of its business as it relates to the design and manufacture of custom “engineered access systems” and misrepresented the value of the products Beeehe manufactured. Defendants contend that they did not fail to disclose material information in applying for the CGL gap policies, and alternatively, that any misrepresentations or omissions in the CGL gap policy applications were not material to Unionameri-ca’s decision to underwrite the policies. For the reasons set forth below, Unionam-erica’s motion is DENIED.

Viewing the record in the light most favorable to Fort Miller and drawing all reasonable inferences therefrom, the factual…