USF Insurance v. Clarendon America Insurance

AMENDED ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT; GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

This action involves a dispute between insurance carriers regarding their duties in connection with Alvizuri, et al. v. Fieldstone Communities Inc., et al., Orange County Superior Court Case No. 03CC00227 (the “Underlying Action”). In Alvizuri, the owners of more than one hundred single-family dwellings sued, inter alia, Hondo Construction & Development, Inc. for damages resulting from alleged construction defects. On May 5, 2005, USF Insurance Company filed this action in Los Angeles Superior Court against Clarendon America Institute Company (“Clarendon America”) and Clarendon National Insurance Company (“Clarendon National”), alleging that defendants had wrongfully refused to participate in the defense and indemnification of Hondo in the Underlying Action. USF sought (1) a declaration that defendants had a duty to defend Hondo in the Underlying Action; (2) a declaration that defendants had a duty to indemnify Hondo in the Underlying Action; (3) equitable contribution of an equal share of the defense costs USF…