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PARKWOODS COMMUNITY ASSOCIATION v. CALIFORNIA INSURANCE GUARANTEE ASSOCIATION

PARKWOODS COMMUNITY ASSOCIATION v. CALIFORNIA INSURANCE GUARANTEE ASSOCIATION
08:10:2006

PARKWOODS COMMUNITY ASSOCIATION v. CALIFORNIA INSURANCE GUARANTEE ASSOCIATION






Filed 8/7/06





CERTIFIED FOR PUBLICATION





IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA






FIRST APPELLATE DISTRICT





DIVISION THREE












PARKWOODS COMMUNITY ASSOCIATION,


Plaintiff and Respondent,


v.


CALIFORNIA INSURANCE GUARANTEE ASSOCIATION,


Defendant and Appellant.



A111726


(Alameda County


Super. Ct. No. RG04166283)



This action was brought by plaintiff Parkwoods Community Association (Parkwoods) following the settlement of its earlier construction defect action arising out of the construction of the Parkwoods condominium development in Oakland. Five of the subcontractor defendants in the earlier action (the Reliance Insureds) were insured by Reliance Insurance Company (Reliance), a Pennsylvania insurance company that was placed into liquidation, causing defendant California Insurance Guarantee Association (CIGA) to assume their defense. The prior action was resolved by a settlement in which the developer and general contractor paid Parkwoods an amount that exhausted their primary commercial general liability (CGL) coverage and included a contribution from their excess insurance carrier that did not exhaust the excess insurance limits. Parkwoods and CIGA agreed upon the amount that CIGA would pay Parkwoods if CIGA is required to pay the obligations of Reliance and the Reliance Insureds, and agreed that this declaratory relief action would be brought to resolve their dispute as to whether Parkwoods' claim is a â€





Description Where developer and contractor were jointly and severally liable to homeowners association for all construction defects for which subcontractors--whose insurer became insolvent--were responsible. Suit against developer and contractor was resolved by a settlement in which those defendants paid homeowners association an amount that exhausted their primary commercial general liability coverage. Which included a contribution from their excess insurance carrier that did not exhaust the excess insurance limits. The coverage provided by the unexhausted excess coverage policy was available to satisfy homeowners association's claim. So there was no covered claim within meaning of statute obligating California Insurance Guarantee Association to pay such claims.
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