Shaw Mortgage Corp. v. Peerless Insurance

ORDER DENYING DEFENDANT’S MOTION FOR PARTIAL SUMMARY JUDGMENT AND DENYING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT

Plaintiff Shaw Mortgage Corporation dba Patiosource & The Natural Touch (“Plaintiff’ or “Shaw Mortgage”) and Defendant Peerless Insurance Company (“Defendant” or “Peerless”) have filed cross-motions for partial summary judgment. For the reasons discussed below, Defendant’s motion is DENIED and Plaintiffs motion is DENIED.

I. FACTUAL BACKGROUND

Since 1995, Steve and Jan Shaw (the “Shaws”) have operated the Natural Touch and Patio Source as joint operations. In 2003, the Shaws opened a showroom for the stores in a rented retail space located at 9050 Kenamar Drive, San Diego, CA. The Natural Touch sells decorations such as silk trees, plants, floral designs, and seasonal decorations. The Natural Touch also engages in home design work. Patio Source showcases and sells high-end indoor and outdoor furniture and accessories. Both businesses are seasonal-Natural Touch has increased production and sales during the holiday and summer seasons, while Patio Source has increased sales in the spring and summer seasons.

On or about December 26, 2005, a fire completely…