MW Builders, Inc. v. Safeco Insurance Co. of America

MEMORANDUM **

Defendants Safeco Insurance Company of America and affiliates (collectively referred to as “Safeco”) appeal the judgments in favor of MW Builders, Inc., and its subrogated insurer (collectively referred to as “MW Builders”). We review de novo a district court’s rulings on summary judgment motions. Caliber One Indem. Co. v. Wade Cook Fin. Corp., 491 F.3d 1079, 1082 (9th Cir.2007). The facts are known to the parties and need not be repeated here.

We begin with Safeco’s challenge to MW Builders’ claim that it is entitled to coverage under Safeco’s commercial general liability (“CGL”) policies. The CGL policies limit coverage to “property damage” caused by an “occurrence.” For a claim of faulty workmanship to give rise to “property damage,” a claimant must demonstrate that there is damage to property separate from the defective property itself. Oak Crest Constr. Co. v. Austin Mut. Ins. Co., 329 Or. 620 , 998 P.2d 1254, 1258 (2000). The CGL policies define the term “occurrence” as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Although the policies do not define the term “accident,” the Oregon Supreme Court…