![]() «2» State Farm initially asserted that Ellis Court's coverage ended in July 1998 when it issued an "Amendatory Collapse Endorsement." Later in litigation, State Farm conceded the endorsement was not lawful, and the parties filed a stipulation that the amendment was ineffective. State Farm received a judgment credit for the amount which Ellis Courts received from Greenwich. «1» Greenwich Insurance Company's policy became effective September 1, 1999, the date on which Ellis Court cancelled its State Farm policy. State Farm's Apartment Policy is an "occurrence" policy and loss involving collapse caused by hidden decay is a covered peril when the loss occurs during the policy period, even if the insured discovers the loss after the policy expires. The trial court granted Ellis Court's motion, finding: Ellis Court moved for partial summary judgment on the issue of what trigger applies to first-party collapse caused by hidden decay. State Farm counterclaimed for a declaration of no coverage. State Farm rejected Ellis Court's claim, responding, "The date of loss is the date you were aware of damage from decay such that a claim was or should have been submitted." Ellis Court sued State Farm for a declaration of coverage and recovery from damages. On March 30, 1999, after inspecting the building, a building consultant notified HRG that "ubstantial impairment and failure of structural and architectural details from water intrusion is occurring." Repairs to Ellis Court, which began in August 2000, have been completed.Įllis Court submitted a claim in May 2000. Following those repairs, a structural engineer reviewed the repairs and stated that the structural integrity of the building was intact and the useful life of the building should be restored. In 1993, HRG hired a contractor to repair the stucco. In early 1993, Ellis Court hired Housing Resources Group (HRG) to manage the building. «2» Covered losses included "accidental direct physical loss to covered property involving collapse" caused by hidden decay. «1» The State Farm policies covered "loss commencing during the policy period." Although the policy excluded continuous or repeated seepage or leakage and collapse, it covered collapse caused by hidden decay under an extension of coverage for collapse. Following that period, Ellis Court was insured by Greenwich Insurance Company,Ĩ10 Ellis Court Apts. (Ellis Court) held annual insurance policies with State Farm Insurance Company for its 58-unit apartment building beginning Jand running through September 1, 1999. The trial court rejected the insurer's request that the court use the manifestation trigger rule to determine coverage, and granted the insured summary judgment on the insurer's other defenses to coverage. The owners filed suit when the insurer denied their claim. A condominium sustained substantial structural impairment as the result of water damage. Hayeson behalf of Andy Chau, Broadway Plaza Condominium Owners Association, Pacific Village Owners Association, and West Point Place Condominium Owners Association, amici curiae.Ī PPELWICK, J. Zahner(of Foster Pepper & Shefelman, P.L.L.C.), for respondent. Stephens(of Tousley Brain Stephens, P.L.L.C.) and John P. Whitters(of Gordon, Thomas, Honeywell, Malanca, Peterson & Daheim, P.L.L.C.), for appellant. S TATE F ARM F IRE AND C ASUALTY C OMPANY, Appellant.Ĩ08 Ellis Court Apts. Co.Į LLIS C OURT A PARTMENTS L IMITED P ARTNERSHIP, Respondent, v.
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