Jeff Tracy, Inc. v. U.S. Specialty Insurance

ORDER (1) GRANTING DEFENDANT’S MOTION FOR JUDGMENT ON THE PLEADINGS, AND (2) DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT OR, IN THE ALTERNATIVE PARTIAL SUMMARY JUDGMENT

I.

INTRODUCTION

Plaintiff Jeff Tracy, Inc., d/b/a Land Forms Landscape Construction (“Jeff Tracy”), is the insured on a directors, officers and organization liability insurance policy (the “D & 0 Policy”) issued by defendant U.S. Specialty Insurance Company (“USSIC”). During the policy period, Jeff Tracy employees brought a putative class action against the company, Fortino Alvarado Osorio, et al. v. Jeff Tracy, Inc., etc., Case No. 07CC05683 (Orange County Super. Ct. filed May 7, 2007) (the “Osorio Action”), alleging, inter alia, that Jeff Tracy failed to pay the prevailing wage on certain public works projects, failed to inform employees of their classification under California wage law, and made misstatements about how workers would be paid. Shortly thereafter, the California Department of Industrial Relations, Division of Labor Standards Enforcement (“DLSE”) issued civil wage assessments against Jeff Tracy based, in part, on the public works projects at issue in the Osorio Action. After USSIC refused…