American Home Assurance Co. v. SMG Stone Co.

ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

Pending before the Court are the parties’ cross-motions for summary judgment. Plaintiffs American Home Assurance Company (“AHA”) and Insurance Company of the State of Pennsylvania (“ISOP”) seek summary judgment that the insurance policies at issue do not cover the claims by Defendants SMG Stone Co. (“SMG”), J. Colavin & Son, Inc. (“Colavin”), Webcor Construction LP (“Webcor”), and Steadfast Insurance Co. (“Steadfast”). Defendants seek summary judgment that Plaintiffs had a duty to defend the underlying arbitration and litigation proceedings. For the reasons stated below, Defendants’ motion is DENIED, and Plaintiffs’ motion is GRANTED.

I. BACKGROUND

The following facts are undisputed unless stated otherwise.

A. Underlying Insurance Claim

In October 2007, owner and developer Olympic & Georgia Partners LLC (“Olympic”) contracted with Defendant Webcor to construct a 54-story hotel and luxury condominium highrise in downtown Los An-geles (the “Project”). Webcor, in turn, subcontracted with Defendants SMG and Colavin to install stone floor tiles at the Project. Plaintiffs…