Willmar Development LLC v. Illinois National Insurance Co

MEMORANDUM

Appellants Illinois National Insurance Company and Lexington Insurance Company (“appellants”) appeal an adverse grant of summary judgment in favor of appellee Willmar Development, LLC (“Willmar”). The district court granted summary judgment on Willmar’s claim that appellants breached their duty to defend a lawsuit alleging negligence against Willmar in the site-selection and construction of a new home. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

To trigger an insurer’s duty to defend under Oregon law, the insured must demonstrate that the conduct alleged in the underlying complaint falls within the insured’s policy coverage. See Nielsen v. St. Paul. Cos., 283 Or. 277 , 583 P.2d 545, 547 (1978). In this case, the underlying complaint must have alleged “property damage” from an “occurrence” to trigger the duty to defend. There was an “occurrence” in this case because the damages were unintended, accidental results of Willmar’s alleged negligence. See Finley v. Prudential Life & Cas. Ins. Co., 236 Or. 235 , 388 P.2d 21, 26 (1963); see also Mut. of Enumclaw Ins. Co. v. Gutman, 172 Or.App. 528 , 21 P.3d 101, 105 (2001) (“The question is whether the insured…