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Travelers Property Casualty Co. of America v. Alder Grove

May 18, 2009

TRAVELERS PROPERTY CASUALTY COMPANY OF AMERICA, A CONNECTICUT CORPORATION, PLAINTIFF,
v.
ALDER GROVE, LLC, A DELAWARE LIMITED LIABILITY COMPANY; ALDER GROVE ASSOCIATES, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY; ALFRED E. NEVIS, AN INDIVIDUAL; AND SACRAMENTO MADISON WOODS CONDOMINIUMS OWNERS ASSOCIATION, A CALIFORNIA CORPORATION, DEFENDANTS.



ORDER GRANTING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT

Travelers Property Casualty Company of America ("Travelers") brought this action against Alder Grove, LLC, ("Alder Grove"), Alder Grove Associates, LLC ("Alder Grove Associates"), Alfred E. Nevis, and Sacramento Madison Woods Condominiums Owners Association ("Madison Woods") for Declaratory Relief and Unjust Enrichment. Travelers now moves for summary judgment on its claims. Madison Woods and Alfred E. Nevis oppose the Motion.*fn1 For the reasons stated below, Travelers' Motion for Summary Judgment is GRANTED.*fn2

BACKGROUND

In 2004, Alder Grove purchased a building located at 3939 Madison Avenue in Sacramento County (the "Property") through Klamath Investors, LLC. Statement of Undisputed Facts ("SUF") ¶ 1. Travelers alleges that at the time of purchase, the Property was being operated as an apartment complex. Id. ¶ 2. Travelers further alleges that at the time of purchase, Alder Grove took on all of the rights and obligations of existing leases on the Property. Id.

Travelers issued Alder Grove a one-year multi-line policy (the "Policy") that went into effect on May 25, 2004. Under the terms of the Policy, Alder Grove received both first and third-party coverage related to the Property. The Policy excluded coverage for:

j. "Property damage" to:

(1) Property you own, rent, or occupy, including any costs or expenses incurred by you, or any other person, or organization or entity, for repair, replacement, enhancement, restoration or maintenance of such property for any reason. . . .

(2) Premises you sell, give away or abandon, if the "property damage" arises out of any part of those premises. . . .

Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. "Your work"

a. Means:

(1) Work or operations performed by you or on your behalf; and

(2) Materials, parts or equipment furnished in connection with such work or operations.

b. Includes:

(1) Warranties or representations made at any time with respect to the fitness, quality, durability, ...


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