A. D. Irwin Investments, Inc. v. Great Am. Ins. Co., s. 7--349
| Decision Date | 14 October 1970 |
| Docket Number | 23560,Nos. 7--349,s. 7--349 |
| Parties | A. D. IRWIN INVESTMENTS, INC., a Colorado corporation, Plaintiff in Error, v. GREAT AMERICAN INSURANCE COMPANY, Defendant in Error. . I |
| Court | Colorado Court of Appeals |
H. Earl Moyer, Leonard L. Beal, Lakewood, for plaintiff in error.
Yegge, Hall & Evans, Denver, for defendant in error.
This case was originally filed in the Supreme Court of the State of Colorado and was subsequently transferred to the Court of Appeals under the authority vested in the Supreme Court.
The action below was for a declaratory judgment initiated by the complaint of Great American Insurance Company against A. D. Irwin Investments, Inc., and Paul Walden, Inc. The parties are here in reverse order to their trial court positions.
The case is an offshoot of a suit brought by Irwin Investments against Paul Walden, Inc., an insured of Great American. Walden designed and installed an air conditioning system in an apartment building owned by Irwin Investments. All parties have stipulated in the present action that the manner in which Walden designed, and installed the air conditioning system caused losses to Irwin Investments, consisting of the following: (a) the expense of replacing certain functionally inadequate machinery; (b) the expense of repairing ceilings damaged of necessity in replacing that machinery; (c) the expense of wrapping certain piping to prevent further condensation, which condensation had dripped upon and damaged the basement ceilings of the apartment building; (d) the expense of redecorating the ceilings damaged by the condensation; and (e) the expense of repairing walls damaged by the vibration of the chiller, a part of the air conditioning equipment, which had not been properly mounted. After commencement of the damage action against Walden, it was determined that Walden was bankrupt.
Great American denied any coverage under the liability policy it had issued to Walden as to the damages claimed by Irwin Investments. Insofar as pertinent here, the Great American policy provided coverage to Walden for all sums that Walden might become legally obligated to pay as damages because of injury to or destruction of property, including loss of use, Which was caused by accident. The policy also contained certain provisions of exclusion. The general denial of liability on the part of Great American was grounded on the contention that the damage claimed by Irwin Investments was not caused by an accident. Great American also asserted that, even if the damage were caused by an...
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