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Verdicts & Settlements

June 17, 2011


CASE / NUMBER: Arrow Point Capital Corp., successor in interest to Royal Insurance Co. of America, a Delaware Corp. v. National Union Fire Insurance Co. of Pittsburgh, a Pennsylvania Corp.; Burlington Insurance Co., a North Carolina Corp., and Does 1 through 10 / A568539.

COURT / DATE: USDC Nevada / Jan. 25, 2011.

JUDGE: Hon. Timothy Williams.

ATTORNEYS: Plaintiff - Robert J. Scott (McCurdy & Fuller LLP, Menlo Park).

Defendant - Michael J. Nunez, Jean M. Lawler, Carolyn A. Mathews (Murchison & Cumming, LLP, Los Angeles).

FACTS: Mid Century Insurance Company insured a landscape subcontractor, Sunstate Landscape & Lawn, for a general contractor, Falcon Development, which  was insured by National Union. The two companies worked on four large condominium developments in Las Vegas. Mid Century issued endorsements on Sunstate's policies which named Falcon as an additional insured, limiting coverage to property damage occurring during Sunstate's ongoing operations. After construction defect litigation was filed against Falcon, Arrowpoint Capital Corp., which defended those actions, filed suit against National Union, seeking indemnity and contribution.

PLAINTIFF'S CONTENTIONS: National Union filed a third party complaint against Mid Century seeking contribution.

DEFENDANT'S CONTENTIONS: Mid Century contended that coverage did not exist under Sunstate's policy for the claims against Falcon because the damages did not occur during Sunstate's ongoing operations, but rather after the condominiums were purchased and occupied.

RESULT: The court granted summary judgment for Mid Century.