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Case Briefs

By ALM Staff | Law Journal Newsletters |

'Intentional' Conduct Can Constitute a Covered 'Accident'

In Legacy Partners v. Clarendon American Insurance Co., a Southern District of California judge addressed a motion to dismiss filed by Clarendon with respect to Legacy Partners' breach of contract and bad faith claims against Clarendon. The underlying action involved construction defect litigation against Legacy Partners. In that litigation, the underlying plaintiff alleged that Legacy Partners among others “(1) trespassed upon [plaintiff's] property in order to make repairs to a retaining wall; (2) constructed subterranean tie-backs using Wellington's property without permission; (3) failed to exercise reasonable care and skill in performing construction work on [plaintiff's] property; (4) failed to exercise reasonable care and skill in determining the need for repair to the retaining wall; (5) caused damage by placement of heavy construction equipment and materials on the [plaintiff's] property; and (6) negligently removed storm and pollution work that [plaintiff] had completed as part of its development of the property.” Legacy Partners sought coverage from Clarendon for the underlying litigation. Clarendon denied coverage, based in significant part, upon its claim that the lawsuit did not involve any allegations of an “occurrence” as that term was used in its policy issued to Legacy Partners. Thus, Legacy Partners filed suit alleging, in part, breach of contract and bad faith.

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