Travelers Property Casualty Company of America v. Toll Brothers, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 25, 2022
Docket4:20-cv-03656
StatusUnknown

This text of Travelers Property Casualty Company of America v. Toll Brothers, Inc. (Travelers Property Casualty Company of America v. Toll Brothers, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travelers Property Casualty Company of America v. Toll Brothers, Inc., (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 TRAVELERS PROPERTY CASUALTY Case No. 20-cv-03656-HSG COMPANY OF AMERICA, 8 ORDER DENYING CROSS-MOTIONS Plaintiff, FOR SUMMARY JUDGMENT AND 9 DENYING MOTIONS TO SEAL v. 10 Re: Dkt. Nos. 105, 106, 111, 114, 115, 116 TOLL BROTHERS, INC., et al., 11 Defendants. 12 13 Pending before the Court are the parties’ cross-motions for summary judgment in this 14 insurance action. Dkt. Nos. 106, 115. The Court finds this matter appropriate for disposition 15 without oral argument and the matter is deemed submitted. See Civil L.R. 7-1(b). For the reasons 16 detailed below, the Court DENIES the motions. 17 I. BACKGROUND 18 The facts are largely undisputed. A third-party company, Marble Palace, Inc., 19 subcontracted with Defendant Shapell1 to furnish and install bathroom tile at a housing 20 development in San Ramon, called “Abbington at Gale Ranch.” See Dkt. No. 112-1 (“Plante 21 Decl.”) at ¶¶ 2–3, 9; see also Dkt. No. 36 (“FAC”) at ¶ 34. Plaintiff Travelers Property Casualty 22 Company of America issued insurance policies to Marble Palace for this project (the “policies”). 23 See Dkt. No. 106-1 (“Vandermoore Decl.”) at ¶ 3; id. Exs. L–N. Under Marble Palace’s 24 subcontract with Shapell, Shapell had to be included as an additional insured under the policies. 25 See Dkt. No. 106-1 (“Vandermoore Decl.”), Ex. P at 120–22 (subcontractor agreement with 26 27 1 Shapell); Plante Decl. at ¶ 9.2 The parties appear to agree that Shapell is in fact an additional 2 insured under these policies. See, e.g., Dkt. No. 106 at 3–4. 3 In March 2018, the Abbington Owners’ Association served Shapell with a Notice of 4 Claims under California Civil Code §§ 910, 6000, asserting that numerous construction defects 5 existed in the housing development (the “Abbington action”). See Plante Decl., Ex. 1. Shapell 6 retained Plante Lebovic LLP. See Plante Decl. at ¶ 4. On April 13, 2018, Plante Lebovic 7 responded to the notice, commencing the pre-litigation process under California Civil Code § 910. 8 See id. at ¶¶ 5–6, 8, & Ex. 2 at 20–21. As part of this process, Plante Lebovic attended an 9 inspection of the housing development on May 4, 2018, and observed testing of the buildings on 10 June 6 and 7, 2018, with Shapell’s consultant. See id. at ¶ 6. 11 On August 16, 2018, Shapell tendered the Abbington action to Travelers as an additional 12 insured under the policies. See id. at ¶ 9; see also Vandermoore Decl., Ex. O at 84–86. In the 13 tender letter, Shapell explained the status of the pre-litigation process and invited Travelers to 14 contact Plante Lebovic if it required more information. See Vandermoore Decl., Ex. O at 86. On 15 August 23, 2018, Travelers acknowledged receipt of the tender letter and requested a copy of the 16 subcontract, which Shapell provided the next day. See Vandermoore Decl. at ¶ 5, & Ex. P at 102– 17 35. Shapell further noted that a complaint had not yet been filed and the case remained in the pre- 18 litigation process. See id., Ex. P at 102. From September 2018 to January 2019, Travelers 19 requested additional information from Shapell, and Shapell provided it. See id. at ¶¶ 6–7, & Exs. 20 Q–R at 137–45. 21 On January 30, 2019, Matthew S. Constantino from Clapp, Moroney, Vucinich, Beeman & 22 Scheley advised Shapell through its counsel, Plante Lebovic, that Clapp Moroney had been 23 retained by Travelers to represent Shapell in the Abbington action. See Dkt. No. 106-3 24 (“Constantino Decl.”) at ¶ 3, & Exs. A–B at 4–15. Mr. Constantino indicated that the firm would 25 send over “an Association of Counsel pleading” for Shapell’s signature. See id., Ex. A at 4. 26 27 1 Shapell responded by requesting Travelers’ reservation of rights letter. See id., Ex. B at 6–12, 14. 2 Travelers sent the reservation of rights letter to Plante Lebovic on February 14, 2019. See 3 Vandermoore Decl. at ¶ 9, & Ex. S at 147–53. The letter stated in relevant part: 4 Travelers will participate in the defense of your client Shapell in [the 5 Abbington action] under a full “reservation of rights” letter. . . .

6 . . .

7 Travelers agrees to defend Shapell with regard to the referenced matter. Accordingly, please provide Travelers with a statement of the 8 amount your client contends Travelers currently owes for the defense of Shapell, the basis for the position, as well as the invoices for the 9 amounts incurred in defending Shapell. Travelers specifically requests copies of all bills from the date of tender through the current 10 time. In addition, please be advised that effective immediately, Travelers is asserting its right to appoint counsel of its choosing to 11 represent Shapell in the Abbington Owners Association v. Shapell Industries, Inc and Toll Brothers, Inc. matter, and will be retaining the 12 services of Mr. Matt Constantino of the law firm of Clapp, Moroney, Vucinich Beeman Scheley to handle the defense of Shapell in the 13 Abbington Owners’ Association v. Shapell Industries matter. If Shapell wishes to continue to retain their own counsel’s services, it 14 may do so, but at its own expense. From this date forward, Travelers will only pay for the defense fees and costs incurred by Mr. 15 Constantino. Mr. Constantino will be contacting you shortly to discuss the handling of the matter. 16

17 Id. at 147, 153. 18 That day, Mr. Constantino asked Plante Lebovic for a time to discuss Clapp Moroney 19 “associating in to this case and next steps.” See Constantino Decl., Ex. B at 11. Plante Lebovic 20 stated that it needed time to review the reservation of rights letter first. See id. at 6–10. On March 21 7, 2019, Plante Lebovic told Mr. Constantino: 22

23 [W]e’ve been tied up on some matters in the last few weeks and haven’t had a chance to fully touch base with the client regarding how 24 they wish to proceed with their defense going forward, but we’ll let you know as soon as we receive word. Thanks for your patience. 25 26 See id. Ex. B at 6. The parties did not reconnect before The Abbington Owners’ Association filed 27 the complaint against Shapell. See Plante Decl. at ¶ 18. 1 in the Abbington at Gale Ranch development in Contra Costa Superior Court, Abbington Owners’ 2 Assoc. v. Shapell Industries, Inc., Case No. MSC19-00503, on March 12, 2019. See Plante Decl. 3 at ¶¶ 18–19, & Ex. 4 at 27–63. What follows is a series of email correspondence between Plante 4 Lebovic and Clapp Moroney. 5 • On June 6, 2019, Clapp Moroney emailed Plante Lebovic, asking to confirm that a 6 complaint and demurrer were filed in the Abbington action, and requesting copies 7 of those documents. See Constantino Decl., Ex. D at 28. Clapp Moroney reached 8 out again on June 20, June 24, and July 10 “for an update on this matter.” See id. at 9 26–27. 10 • On August 28, 2019, Plante Lebovic provided Mr. Constantino with information 11 regarding a mediation session scheduled with JAMS for September 20, 2019. See 12 id., Ex. E at 40. Mr. Constantino requested mediation briefs and other related 13 documents “to get us up to speed for the 9/20 mediation session.” See id. at 39–40. 14 He explained that “[w]e have no information at this time.” See id. at 40. 15 • On September 11, Plante Lebovic responded that the mediation date was moved to 16 September 25, and provided the requested documents. See id. at 37–39. 17 • On October 7, after the mediation session, Clapp Moroney emailed Plante Lebovic 18 again “following up on whether our office will be associating in.” See id. at 36. 19 Clapp Moroney sent another email on December 15 asking “for any updates since 20 the September 25, 2019 mediation.” See id., Ex. F at 43. 21 • Clapp Moroney sent a letter on January 14, 2020, asking for updates regarding the 22 status of any settlement discussions or additional mediation dates.

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Travelers Property Casualty Company of America v. Toll Brothers, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-property-casualty-company-of-america-v-toll-brothers-inc-cand-2022.