Regional Steel Corp. v. Liberty Surplus Ins. Corp. CA2/1

Regional Steel Corporation (Regional) appeals judgment entered in favor of its insurer, Liberty Surplus Insurance Corporation (Liberty). The trial court found that Liberty had no duty to defend Regional against claims brought by JSM Construction, Inc. (JSM), arising out of Regional’s installation of defective steel framing in an apartment building JSM was constructing. We affirm.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

1. The Florentine Project

JSM Florentine, LLC (JSM Florentine), is the owner of an apartment building, the Florentine Apartments, under construction in North Hollywood in 2004 (Florentine Project). The Florentine Project complex consists of 14 stories, including retail space on the ground floor, four floors of parking, and 180 residential units on the upper floors. JSM was the general contractor on the project. Regional was a subcontractor engaged pursuant to a June 4, 2004 subcontract to provide reinforcing steel to the Florentine Project’s columns, walls, and floors. Webcor Construction LP (Webcor) was engaged to supply and pour concrete to encase Regional’s rebar skeleton.

From May through September 2004, Regional prepared and submitted shop…