Harris Thermal Transfer Produc v. James River Insurance Company

MEMORANDUM

Harris Thermal Transfer Products, Inc. (Harris Thermal) and James River Insurance Company (James' River) cross-appeal from the district court’s grant of summary judgment in favor of James River and the district court’s denial of Harris Thermal’s motion for summary judgment. We review de novo a district court’s ruling on cross-motions for summary judgment. Redevelopment Agency of City of Stockton v. BNSF Ry. Co., 643 F.3d 668, 672 (9th Cir.2011).

From the allegations in Delta-T’s counterclaims, it is plain that Delta-T’s claims “directly ... [arose] out of or resulted] from the design or manufacture of any goods or products ... sold or supplied by [Harris Thermal].” Thus, these claims fall squarely within the coverage exclusion set forth in Section III(j) of the policy that Harris Thermal held with James River. Further, Delta-T’s claims are, as alleged, attributable to “faulty workmanship, construction[,] or work not in accordance with [design specifications].” Thus, Delta-T’s claims also squarely fall within the coverage exclusion set forth in Section 111(8). Either exclusion is sufficient to negate James River’s duty to defend. Accordingly, with respect to the duty…