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Capital City Real Estate, LLC v. Certain Underwriters at Lloyd's

United States District Court, D. Maryland

February 24, 2014

CAPITAL CITY REAL ESTATE, LLC, Plaintiff,
v.
CERTAIN UNDERWRITERS AT LLOYD'S, LONDON SUBSCRIBING TO POLICY NUMBER ARTE018240, Defendant.

MEMORANDUM AND ORDER

MARVIN J. GARBIS, District Judge.

The Court has before it Plaintiff's Motion for Summary Judgment [Document 11], Defendant's Cross-Motion for Summary Judgment [Document 15], and the materials submitted relating thereto. The Court has held a hearing and had the benefit of the arguments of counsel.

I. BACKGROUND

A. Procedural Posture

In this case, Plaintiff Capital City Real Estate, Inc. ("Capital City") sues Defendant Certain Underwriters at Lloyd's, London Subscribing to Policy Number ARTE018240 ("Underwriters") seeking a declaratory judgment establishing Capital City's right to a defense and indemnity in relation to an underlying lawsuit.

The parties agree that there are no genuine issues of material fact and that the case can be resolved at the summary judgment stage.[1]

B. Undisputed Facts

1. Relevant Business Entities

• Capital City is a limited liability company engaged in the business of real estate development with its principal place of business located in Washington, D.C.

• Underwriters is a conglomerate of entities that operate under the umbrella or trade name of Certain Underwriters at Lloyd's, London.

• Marquez Brick Work, Inc. ("Marquez Brick") is a corporation engaged in the business of concrete, bricks, blocks, and foundation work with its principal place of business located in Maryland.

2. Construction work

• During June of 2009, Capital City - as general contractor - was conducting renovations at 57 Bryant Street, NW, Washington, DC ("57 Bryant Street").

• The adjacent property at 55 Bryant Street was owned by Leon Yates ("Yates") and insured by The Standard Fire Insurance Company ("Standard Fire").

• Capital City subcontracted a portion of the work to Marquez Brick, including foundation, structural, and underpinning.

3. The Insurance Contract

• The subcontract between Capital City and Marquez Brick required Marquez Brick to indemnify Capital City for damages caused by its work and further required Marquez Brick to maintain certain general liability insurance naming Capital City as an additional insured.

• In November of 2008, Underwriters issued an insurance policy to Marquez Brick under Policy No. ARTE018240 ("Policy") for the policy period of 11/17/2008 to 11/17/2009.

• There was a Policy Endorsement to the Policy that named Capital City as an additional insured.

• The Policy Endorsement defined an "additional insured" as follows:

Section II - Who Is An Insured is amended to include as an additional insured of the person(s) or organization(s) shown in this Schedule, but only with respect to liability for "bodily injury", "property damage", or ...

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