Far Northwest Development Co. v. Community Ass'n Underwriters of America

MEMORANDUM

The Somerset Village Townhomes Condominium Association (the “Association”), acting as Faramarz Ghoddoussi’s (“Ghod-doussi”) assignee, appeals the district court’s finding that it is not entitled to indemnity from its insurer, Community Association of Underwriters of America (“CAU”). It also appeals the district court’s holding that CAU did not act in bad faith in denying defense to Ghoddous-si. As the facts are known to the parties, they will not be repeated here, except as necessary to explain our decision. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

Because we can affirm on any ground supported by the record, see McSherry v. City of Long Beach, 584 F.3d 1129, 1135 (9th Cir.2009), we conclude that CAU is not required to provide coverage on these facts because the damage to the condominiums was not an “accident” as contemplated by its policy. Washington courts have said that, for an accident to occur, “[t]he means as well as the result must be unforeseen, involuntary, unexpected and unusual.” Detweiler v. J.C. Penney Cas. Ins. Co., 110 Wash.2d 99 , 751 P.2d 282, 284 (1988). Ghoddoussi admitted in his sworn statement that he turned a blind eye to…