Lexington Ins. Co. v. Chicago Flameproof & Wood Specialties Corp.

Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in action seeking declaration that it had no duty to defend defendant-insured in three underlying actions alleging that defendant was guilty of either fraudulent or negligent misrepresentation in supplying customers with non-certified lumber that caused damage to other aspects of customers’ building projects. Dist. Ct. could properly find that if defendant had supplied non-certified lumber, then resulting damage in tearing out said lumber and replacing it with certified lumber could not be said to have been caused by “accident,” as required for coverage under relevant policies. Moreover, underlying complaints did not allege “occurrence” or “accident,” where said complaints alleged that defendant had deliberately shipped uncertified lumber and concealed said fact. Fact that defendant believed that supplied lumber would have eventually been certified did not require different result.