Facts

Robert and Leslie Mobraaten bought homes from plaintiff developer, The Housing Group, in the Cameo Crest development of Contra Costa. Mobraaten and other buyers filed suit against Empire alleging construction defects in the homes.

The Housing Group cross-complained against its subcontractors, including Technical Security Services. Technical Security Services had two insurance policies with defendant Empire Indemnity Insurance Company. The Housing Group filed suit for bad faith, breach of duty to defend and indemnify.

PLAINTIFFS' CONTENTIONS:
The Housing Group contended that Empire Indemnity was required to defend them in the Mobraaten lawsuit based on the insurance policy with Technical Security and contract with The Housing Group. Empire Indemnity's failure to defend allegedly damaged The Housing Group.

DEFENDANT'S CONTENTIONS:
Empire Indemnity contended that they were not required to defend and did not breach any duty.

Result

Verdict in favor of Empire Indemnity, the court found that plaintiffs The Housing Group, The Housing Group - Northern California and Golden State Developers, Inc. were not additional insureds under the Empire policy.