Ross Island Sand & Gravel Co., an Oregon Corporation v. General Insurance Company of America, a Washington Corporation

A ready-mix-concrete supplier appeals a summary judgment, 315 F.Supp. 402 , holding that its liability insurance carrier had no duty to defend a claim by a building contractor who suffered a loss because of a delivery of nonconforming or defective concrete. We affirm.

Ross Island Sand & Gravel Co. supplied ready-mix concrete to Beck-Utah, general contractors, for use in the construction of a high-rise apartment house in Portland, Oregon. Beck-Utah was required by the supervising architects to tear out and repour the fourth floor of the building because of alleged defects in the slab. The construction specifications called for a monolithic pour of slab and underlying beams. The cost of remedying the defective pour included the cost of replacing the beams. The beams were not claimed to have been damaged or defective, but they were united with the defective slab. Beck-Utah sued Ross Island in the United States District Court for the District of Oregon, claiming damages for its enhanced costs. Ross Island tendered the defense to General Insurance. General refused the tender because its insuring engagements did not cover the cost of replacing or repairing any defective goods sold or…