All Green Electric, Inc. v. Security National Insurance Co.

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In 2012, Dr. Jacobs hired All Green to perform electrical work for Jacobs’s MRI and X-ray facility, including a room in which a mammography unit was to be installed. Hologic installed that unit but discovered it was not operating correctly due to a magnetic field in the room. All Green ran power to another room but the magnetic field persisted; the unit continued to malfunction. The magnetic field continued to interfere with the unit's operation after installation of steel shielding. Jacobs then hired an electromagnetic field expert who determined that the problem was caused by a loose bolt in an electrical cabinet installed by All Green. When the bolt was tightened, the magnetic field instantly disappeared. Jacobs filed suit. All Green tendered defense of the lawsuit to its insurer, SNIC, under policies covering bodily injury and property damage liability. All Green denied the allegations of negligence, stating that all bolts had been properly tightened and that its work had passed two inspections. SNIC denied the claim citing the “impaired property” exclusion. The court of appeal affirmed summary judgment, holding that SNIC had no duty to defend. If Jacobs’s allegations were found true, SNIC would not have to indemnify, nor would SNIC have to indemnify if, as All Green contended, it was not responsible for the loose bolt. View "All Green Electric, Inc. v. Security National Insurance Co." on Justia Law