Last year our partner Seth Row reported on an Oregon Court of Appeals decision, West Hills Development Co. v. Chartis Claims, Inc., 273 Or App 155 (2015).
In West Hills, Oregon Auto Insured, a subcontractor, and the liability policy named the general contractor as an additional insured. In an underlying lawsuit by homeowners alleging construction defects, the complaint alleged that the general contractor had negligently supervised its subcontractors, who themselves were negligent, but did not name or identify Oregon Auto’s insured subcontractor. The policy provided that the general contractor, West Hills, was an additional insured “only with respect to liability arising out of [the subcontractor’s] ongoing operations performed for [West Hills].” Oregon Auto refused to defend. In West Hills’ subsequent lawsuit, both the trial court and the court of appeals held that Oregon Auto owed its additional insured a defense. Continue Reading