Facts

The Grande at Santa Fe Place, located at 1205 Pacific Coast Highway, San Diego, California, is a 39-story condominium tower that was substantially completed on June 30, 2005. Bosa Development California, Inc. was the developer and general contractor for Grande North. In June 2003, Starline Windows Inc. subcontracted with Bosa to furnish and install a window-wall system at Grande North, which included insulated-glass units (IGU). Starline issued a 10-year limited warranty for the windows. Starline subcontracted with Star Team Installations Inc. for installation of the window-wall system. Beginning in March 2014, Starline received several notices of claims from homeowners alleging failure and migration of polyisobutylene sealant within the IGUs. In some instances, the polyisobutylene migrated onto the glass panes of the IGUs, resulting in visual obstructions and a change in color for the polyisobutylene. Bosa had purchased a primary Owner Controlled Insurance Program policy underwritten by Liberty Mutual Fire Insurance Company "to cover itself and its subcontractors for course of construction and completed operations liability regarding Grande North." Defendant Insurance Company of the State of Pennsylvania (ICSOP) issued the first layer excess Owner Controlled Insurance Program policy that followed form to the Liberty Mutual primary policy. On July 22, 2014, Starline executed a Repair Agreement with Bosa under which Starline agreed to replace certain IGUs at Grande North in accordance with the Starline Warranty. Starline tendered the claims by the homeowners to ICSOP in March 2014, September 2015, and December 2015 and sought coverage under the ICSOP policy, but ICSOP did not respond to Starline's tenders. Starline claimed it had not yet paid its vendors, Starline Windows, Ltd. And Starline Windows USA, LLC for the replacement IGUs or the labor to remove and replace the affected IGUs. On April 2, 2021, Starline filed a complaint against ICSOP alleging declaratory relief and breach of contract for failure to defend and indemnify Starline against the homeowner claims.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant breached the insurance policy by not covering the property damage to the IGUs under the terms of the insurance policy.

DEFENDANT'S CONTENTIONS: Defendant argued that it does not owe a duty to defend or indemnify Starline for the amounts Starline alleges it incurred to replace IGUs at Grande North since the window claims did not involve property damage covered under the Liberty Mutual and ICSOP policies and as a supplier of the window-wall system, it did not qualify as an Additional Named Insured under the policy.

Result

The court granted defendants' motion for summary judgment.