The Superior Court of San Diego County (California) entered summary judgment in favor of defendant insurance company, finding that the insurance company had no duty to defend or indemnify plaintiff insureds in a lawsuit brought against them by the buyers of the insureds’ home. The insureds appealed.
California Business Lawyer & Corporate Lawyer, Inc. is a California Corporation Compliance Attorney
Overview
The insureds purchased a course of construction policy from the insurer for a home they were building. After completion of the construction, the course of construction policy converted into a homeowner’s policy. After living in the home for about nine months, the insureds sold it to the buyers, and the insurance company cancelled the policy. The insureds bought another home and insured it with a second homeowner’s policy purchased from the insurance company. The buyers alleged that they suffered bodily injury and property damage as a result of the insureds’ misrepresentations and numerous structural defects in the home. The court held that the insurance company had no duty to defend or indemnify the insureds and that the trial court properly granted summary judgment in favor of the insurance company. Read as a whole, an arising out of the sale exclusion in the policies provided that after real property was sold or transferred, claims for bodily injury or property damage resulting from certain known or unknown defects in the real property were not covered. The injuries that the buyers allegedly suffered arose out of known or unknown defects in the real property after its sale.
Outcome
The court affirmed the judgment.
