Parklyn Bay Co. v. Liberty Insurance

ORDER GRANTING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT AND DENYING DEFENDANT’S CROSS-MOTION FOR SUMMARY JUDGMENT

I. BACKGROUND

Plaintiff Parklyn Bay Company brought this insurance coverage action against De *1145 fendant Liberty Surplus Insurance Corporation in 2013. Docket No. 1. Parklyn Bay paid $100,000 for a Commercial General Liability policy (the Policy) from Liberty to cover a major construction project at the apartment building at 1800 Pacific Avenue in San Francisco, owned by Parklyn Bay. See Docket No. 58-2, Ex. E (Policy) at 108. 1 Liberty concedes that Parklyn Bay’s contractor on the construction project, Oliver and Co. (Oliver), was an additional insured under the Policy. Docket No. 60 (Opposition) at 1 n.l.

In June 2012, Parklyn Bay tenants Bradford Duncan and Clark Carrol (the Tenants) filed suit against Parklyn Bay in San Francisco Superior Court (the Duncan Action). See Docket No. 58-2, Ex. A (Duncan Complaint). The Duncan complaint contained ten causes of action, but at the heart of the action were allegations that Parklyn Bay and its contractor, Oliver, had knowingly or negligently exposed the Tenants to asbestos during the construction project. See,…