Jihan, Inc. v. Amco Insurance Company

I. Background

26 This insurance coverage dispute arises from two property loss claims (“Claims”) 27 submitted by Plaintiffs in connection with their car wash and oil change facility (“Car 28 Wash”) in Jamul, California. The Claims involve alleged damage to the building structure and certain car wash systems and other equipment caused by a May 15, 2018 electrical fire (“Fire Loss”) as well as a second claim for damages resulting from an alleged vandalism incident (“Vandalism Loss”) that occurred approximately one month later (collectively, “Losses”). Plaintiffs sought coverage for the Losses under a commercial property insurance policy (“Policy”) issued by Amco to Plaintiffs. Amco partially denied coverage for the Claims based on Amco’s contention that Plaintiffs sold the car wash systems, machinery, and other business personal property items to a third party prior to the date of the Losses as well as Policy exclusions for damage caused by wear and tear, negligent maintenance and dishonesty/entrustment. A. Leasing and Sale Transactions 12 Plaintiffs are tenants on a ground lease with Raul Rodriguez for the property located 13…