C.C., as assignee, et al. v. UNITED STATES FIDELITY & GUARANTY COMPANY, et al.

CourtDistrict Court, W.D. Washington
DecidedJanuary 23, 2026
Docket3:24-cv-05535
StatusUnknown

This text of C.C., as assignee, et al. v. UNITED STATES FIDELITY & GUARANTY COMPANY, et al. (C.C., as assignee, et al. v. UNITED STATES FIDELITY & GUARANTY COMPANY, et al.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C.C., as assignee, et al. v. UNITED STATES FIDELITY & GUARANTY COMPANY, et al., (W.D. Wash. 2026).

Opinion

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4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT TACOMA 7 C.C., as assignee, et al., Case No. 3:24-cv-05535-TMC 8 Plaintiffs, ORDER GRANTING IN PART AND 9 DENYING IN PART MOTION FOR v. PARTIAL SUMMARY JUDGMENT 10 UNITED STATES FIDELITY & 11 GUARANTY COMPANY, et al., 12 Defendants. 13

14 I. INTRODUCTION 15 Plaintiffs are former residents of the Kiwanis Vocational Home (“KVH”) who allege that 16 they were physically and sexually abused during their time at KVH in the 1980s and 1990s. 17 Dkt. 5 ¶ 4.17. At various times during this period, Defendants United States Fidelity & Guaranty 18 Company (“USF&G”), Granite State Insurance Company (“Granite State”), Insurance Company 19 of North America, and Federal Insurance Company (the latter two collectively, “Chubb”) 20 provided insurance to Kiwanis International (“Kiwanis”). Dkt. 90-1 at 17–125, 148–267; 21 Dkt. 90-2; Dkt. 90-3; Dkt. 90-4 at 1–64; Dkt. 92-3. Although KVH was operated by a separate 22 organization, Lewis County Youth Enterprises (“LCYE”), Plaintiffs allege that KVH was 23 affiliated with Kiwanis as a “major service project.” Dkt. 5 ¶ 4.16; C.C. v. Kiwanis Int’l, 24 1 568 P.3d 677, 679–80 (Wash. Ct. App. 2024), review denied, 4 Wn.3d 1030, 569 P.3d 736 2 (2025). 3 Decades after the alleged abuse, Plaintiffs brought lawsuits in Washington superior court

4 against Kiwanis, former KVH executive director Charles McCarthy, former KVH interim 5 executive director Guy Cornwell, and others. Id. ¶¶ 1.2–1.4; Dkt. 92-1 at 4–6. These lawsuits 6 (the “Underlying Actions”) resulted in covenant judgments between Plaintiffs, McCarthy, and 7 Cornwell, under which McCarthy and Cornwell assigned their rights against Defendants to 8 Plaintiffs. Dkt. 92-1 at 6–7; Dkt. 90-12 at 99–136. Plaintiffs then filed this action against 9 Defendants. Dkt. 1. 10 Plaintiffs now seek partial summary judgment on four issues: (1) whether McCarthy and 11 Cornwell are insured as Kiwanis members under certain policies issued by Defendants; 12 (2) whether McCarthy and Cornwell are insured as Kiwanis affiliates under policies issued by

13 USF&G and Granite State; (3) whether McCarthy and Cornwell are insured under certain 14 policies issued by Chubb to the extent that their liability arises from Kiwanis activities or 15 activities on Kiwanis’s behalf; and (4) whether Washington’s “continuous trigger” rule applies 16 such that a Plaintiff’s bodily injury would trigger coverage under a policy so long as the injury 17 arose or continued during the time that policy was in effect. Dkt. 89 at 2–3. For the following 18 reasons, the Court agrees with Plaintiffs that Cornwell was insured under the primary Chubb 19 policies in effect from November 1988 to November 1991, but only for any Kiwanis activities or 20 activities he undertook on Kiwanis’s behalf. The Court therefore GRANTS summary judgment 21 to Plaintiffs on that narrow issue. However, the Court DENIES summary judgment on all 22 remaining issues raised by Plaintiffs.

23 24 1 II. BACKGROUND This litigation involves many insurance policies with different language and definitions 2 for the policy terms therein. Below, the Court summarizes each policy that Defendants issued to 3 Kiwanis during the relevant period. 4 5 A. USF&G policies USF&G issued three primary insurance policies to Kiwanis during the relevant period: 6 Policy 1CC A 97254, which ran from October 1977 to October 1980; Policy 1CC D 63876, 7 which ran from October 1980 to October 1983; and Policy 1CC 017 254006, which ran from 8 October 1983 to October 1985. Dkt. 90-1 at 16–39 (Policy ICC A 97254), 45–80 (Policy 1 CC D 9 63876), 81–101 (Policy 1CC D 63876); see Dkt. 91 at 4 (representing that Policy 1CC 017 10 254006 was canceled in October 1985). 11 Under these policies, a “Named Insured” included Kiwanis, Kiwanis members, local 12 Kiwanis Clubs, Kiwanis Districts, Kiwanis Divisions, subsidiaries and affiliates, Kiwanis Club 13 Foundations, Kiwanis District Foundations, Kiwanis International Foundations, Key Clubs and 14 members, Circle K Clubs and members, Builder Clubs and members, Kewanettes, and volunteer 15 workers. Dkt. 90-1 at 19, 52, 91. Each policy also included an endorsement defining “persons 16 insured” to include “any member of the Named Insured but only with respect to his liability for 17 activities of the Named Insured or activities performed by such member on behalf of the Named 18 Insured.” Id. at 28, 57, 94. 19 USF&G also issued Policy CEP 126205, a first-layer excess policy that ran from 20 May 1980 to May 1981. Id. at 40–44. Under this policy, a “Named Insured” included “the person 21 or organization named in Section 1.1 and . . . any subsidiary thereof and any other organization 22 coming under the Named Insured’s control and active management,” so long as written notice 23 was provided to USF&G. Id. at 43. An “insured” included anyone insured by an underlying 24 1 insurance policy “but only to the extent of the insurance afforded to such other person or 2 organization by such underlying insurance.” Id. 3 B. Granite State policies

4 Granite State issued three umbrella liability policies to Kiwanis during the relevant 5 period: Policy 6680-7665, which ran from October 1, 1980 to October 1, 1981; Policy 6681- 6 8744, which ran from October 1, 1981 to October 1, 1982; and Policy 6682-9861, which ran 7 from October 1, 1982 to October 1, 1983. Id. at 103–13 (Policy 6680-7665), 114–20 8 (Policy 6681-8744), 121–25 (Policy 6682-9861). These policies defined “Named Assured” to 9 include Kiwanis, Kiwanis members, local Kiwanis Clubs, Kiwanis Districts, Kiwanis Divisions, 10 subsidiaries and affiliates, Kiwanis Club Foundations, Kiwanis District Foundations, Kiwanis 11 International Foundations, Key Clubs and members, Circle K Clubs and members, Builder Clubs 12 and members, Kewanettes, and volunteer workers. Id. at 111, 116, 123. Policy 6680-7665 also

13 provided coverage to any person insured by the corresponding primary policy—here, USF&G 14 Policy 1CC D 63876—“but not for broader coverage than is available” in the underlying policy. 15 Id. at 105. 16 C. Chubb policies The Court summarizes each policy issued by Chubb individually. 17 1. Insurance Company of North America (“INA”) Policy OGL G10790499 18 This primary policy ran from November 1988 to November 1990. Id. at 148– 217. Under 19 this policy, Named Insureds included Kiwanis, Kiwanis Club Foundations, Kiwanis District 20 Foundations, Kiwanis International Foundations, Key Clubs, Circle K Clubs, Builders Clubs, 21 Kewanettes, and Kiwanianne Clubs. Id. at 178, 186, 217. A Named Insured who was designated 22 in the policy declarations as an individual was only covered by the policy “with respect to the 23 conduct of a business of which [the Named Insured is] the sole owner.” Id. at 156. 24 1 Under this policy, members of a Named Insured organization were insured “only with 2 respect to their liability for [the Named Insured’s] activities or activities they perform on [the 3 Named Insured’s] behalf.” Id. at 164. The policy defined “members” to include “the entire

4 members of all entities listed under the heading ‘Named Insured’ as computed in accordance 5 with the manuals in use by the company.” Id. at 195. 6 2. INA Policy XOO G10791455 7 This umbrella liability policy ran from November 1988 to November 1989. Dkt. 90-2 at 8 105–30. Under this policy, the “Named Insured” was defined as “Kiwanis International and its 9 owned, controlled, subsidiary or affiliated organizations now or hereafter constituted,” which 10 included local Kiwanis clubs, Kiwanis districts, Kiwanis divisions, Kiwanis club foundations, 11 Kiwanis district foundations, Kiwanis international foundations, key clubs, circle K clubs, 12 builder clubs, Kewanettes, and Kiwanianne clubs. Id. at 109–10.

13 3. INA Policy SVP D16962351 This primary policy ran from November 1990 to November 1994.1 Dkt.

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C.C., as assignee, et al. v. UNITED STATES FIDELITY & GUARANTY COMPANY, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cc-as-assignee-et-al-v-united-states-fidelity-guaranty-company-et-wawd-2026.