United States Liability Insurance Company v. Mabry Management Co., Inc.

I. Background

22 Jordan Grossman (“the Tenant”) leased residential property 23 owned by Altai Burguin (“the Landlord”). (First Amended Complaint 24 (“FAC”) ¶¶ 7-8; Ex. A at 2.) Defendant Mabry Management Co., Inc. 25 (“the Manager”) managed the residential property on the Landlord’s 26 behalf. (FAC ¶ 8; Ex. A. at 2.) 27 Plaintiff United States Liability Insurance Company (“USLI”) 28 issued a professional liability coverage police to the Manager. (FAC ¶ 17.) The policy excluded coverage for loss or defense costs arising from “bodily injury, mental anguish, . . . pain, suffering, . . . emotional distress, or damage to or destruction of any tangible property.” (Id. ¶ 20.) In November 2020, an explosion and fire destroyed the residential property, allegedly causing the Tenant and his daughter psychological trauma. (FAC ¶¶ 9-11; Ex. A at 4-5.) In May 2021, the Tenant filed suit (“the Underlying Action”) against the Landlord and the Manager in Los Angeles County Superior Court, alleging various contract and tort claims. (FAC ¶ 7; Ex. A.). The Manager tendered the suit to USLI, which agreed in August 2022 to defend the Manager,…