Olympic and Georgia Partners v. Arch Specialty Ins. Co. CA2/2

FACTS AND PROCEDURAL BACKGROUND

I. Facts

A. The project Plaintiff Olympic and Georgia Partners LLC (the LLC) developed and built a 54- story high rise as part of the L.A. Live! mixed-used complex in downtown Los Angeles. The high rise was to be constructed, completed and occupied in three phases, with a Marriott hotel on its bottom floors, a Ritz-Carlton hotel in its middle floors, and 212 Ritz- Carlton luxury condominiums on its upper floors. The LLC hired Webcor as its general contractor, and Webcor hired two subcontractors to install the stone flooring in the condos—J. Colavin & Son and SMG/AGI Stone Company. The two subcontractors divided up the flooring work by room, with each fully installing the flooring in the rooms in which it was assigned to do the work.

2 B. Acquisition and terms of builder’s risk insurance In 2007, as construction commenced, the LLC hired Marsh USA, Inc. (Marsh) as its insurance broker and risk management advisor. With the help of Marsh broker Jenni Ashby (Ashby), the LLC obtained builder’s risk policies from a consortium of eight different insurance companies, each of which agreed to a certain percentage of the overall coverage:…