Fireman's Fund Insurance v. Oregon Cold Storage, LLC

MEMORANDUM **

Oregon Cold Storage LLC, dba Valley Warehouse & Cold Storage (“OCS”) appeals the district court’s summary judgment in favor of plaintiff Fireman’s Fund Insurance Company (“Fireman’s Fund”) in a diversity action involving an insurance coverage dispute under an all-risk property damage policy purchased by OCS from Fireman’s Fund. Fireman’s Fund denied coverage for damage to the floors of OCS’s cold storage facility and filed a declaratory judgment action seeking validation of its stance. OCS then filed an action for *970 breach of contract and declaratory relief against Fireman’s Fund, and the cases were consolidated in the district court. The district court granted summary judgment to Fireman’s Fund. We affirm.

After purchasing the building, OCS discovered that the support beams and posts under the floors had been damaged. There was extensive rotting, and three experts were hired by Fireman’s Fund to investigate the problem. They concluded that the deterioration and rot of the wood subflooring were a result of a long-term process of moisture condensation, freezing, heaving and deterioration that began 10-20 years earlier. They pointed to moisture, condensation and…