United States District Court, W.D. Washington, Seattle
ORDER GRANTING MOTION FOR SUMMARY JUDGMENT
L. ROBART United States District Judge.
the court is Plaintiff Developers Surety and Indemnity
Company's (“Developers”) motion for summary
judgment. (Mot. (Dkt. # 29).) Defendant Alis Homes, LLC
(“Alis”) opposes the motion (Resp. (Dkt. # 31)),
and Defendant Holeshot Properties, LLC
(“Holeshot”) has not responded (see
Dkt.). The court has considered the motion, Developers'
and Alis's submissions in support of and in opposition to
the motion, the relevant portions of the record, and the
applicable law. Being fully advised, the court GRANTS the motion
for the reasons set forth below.
cases arises from a lawsuit between Holeshot and Alis in King
County Superior Court (“the Underlying Suit”).
(See Compl. (Dkt. # 1) ¶ 9); Holeshot
Props., LLC v. Alis Homes, LLC, No. 17-2-06293-1 (King.
Co. Sup. Ct.). Holeshot, the assignee and successor in
interest to PacWest Investment Group, Inc.
(“PacWest”), instituted the Underlying Suit on
January 11, 2017. Holeshot engaged Alis to perform
construction services as the general contractor at 4625 53rd
Ave S., Auburn, Washington (“the Property”).
(Compl. ¶ 9, Ex. 2 (“Underlying Compl.”)
¶ 2.1.) Alis's scope of work included installing new
windows and doors, painting, remodeling the kitchen and
laundry rooms, and “various other repairs” for an
estimate of $43, 436.53. (Id.) In the Underlying
Suit, Holeshot alleges that Alis breached the parties'
agreement by (1) failing to: (a) perform its work in a
workmanlike manner or to perform its work at all; (b)
purchase required materials; (c) use licensed, registered,
and bonded subcontractors; and (2) abandoning its work.
(Id. ¶ 2.5.) Holeshot also alleges that Alis
“utilized inexperienced, unlicensed subcontractors to
perform the [w]ork, ” and that the subcontractors'
work “fell far below the industry standards.”
(Id. ¶¶ 2.6-2.7.) Holeshot further asserts
that it had to hire additional contractors to fix and
complete Alis's work. (Id. ¶¶ 2.9,
2.16.) Based on those alleged events, Holeshot asserted
claims for breach of contract, quantum meruit, and violation
of the Washington Consumer Protection Act
(“CPA”), RCW ch. 19.86. (Id.
¶¶ 3.1-9.2.) Holeshot seeks treble damages, a
constructive trust, promissory estoppel, and a remedy for
unjust enrichment. (Id. ¶¶ 11.1-11.9.)
Holeshot brought the Underlying Suit, Alis tendered the
lawsuit to Developers for defense and indemnity. (Compl.
¶ 11.) On Developers' behalf, Claims Resource
Management, Inc., acknowledged that it received the tender,
investigated the tender under a reservation of rights, and
retained counsel to defend Alis in the Underlying Suit.
(Id.) Developers then brought this suit, seeking a
declaration that it does not have a duty to defend or
indemnify Alis. (Id. ¶ 15.)
March 3, 2016, Developers issued a commercial general
liability (“CGL”) policy, Policy Number
BIS00024679-01 (“the Policy”), to Alis. (Compl.
¶ 8, Ex. 1 (Dkt. # 1-1) (“Policy”).) The
Policy was effective from March 3, 2016, to March 3, 2017
(id.), and provides CGL coverage for “those
sums that [Alis] becomes legally obligated to pay as damages
because of ‘bodily injury' or ‘property
damage' to which this insurance applies”
(id. at 24). The Policy further states that
Developers “will have the right and duty to defend the
insured against any ‘suit' seeking those
Policy also contains an “Additional Conditions
Endorsement.” (Id. at 70.)
endorsement provides that
[t]he following conditions precedent to coverage are added to
and form part of the policy:
1. You must be named an additional insured on the commercial
general liability policy of each contractor and subcontractor
that performs work on your behalf . . . .
2. You must obtain a certificate of insurance from each
contractor and subcontractor that performs work on your
behalf . . . indicating that each such contractor and
subcontractor has a commercial general liability policy in
3. Both the policy within which you are named as an
additional insured and the certificate of insurance you
obtain must each have occurrence, general aggregate, and
products-completed operations aggregate limits . . . ...