Determining there were no allegations of bodily injury or property damage in the underlying lawsuit, the court found there was no duty to defend or indemnify the condominium's managing agent. State Farm Fire & Cas. Co. v. Certified Mgmt., 2018 U.S.Dist. LEXIS 71124 (D. Haw. April 27, 2018).
Frederick Caven sued Certified Management, dba Associa Hawaii ("Associa") on behalf of himself and a class. Caven alleged that he owned a condominium and was a member of the Regency homeowners' association. The suit alleged that Associa was the managing agent for the association. Caven sold his unit in April 2016. Caven asked Associa for condominium documents to provide to the purchaser. Associa charged Caven $182.29 to download 197 pages of condominium documents for Regency. Associa also charged Caven $286.46 for a one-page "fee status confirmation," a document prepared by Associa which contained financial and other information needed to complete the sale. Caven alleged that the fees charged by Associa and other unit owners were excessive and in violation of Hawaii law.
Regency was a named insured under a residential community association policy issued by State Farm. Associa tendered the Caven lawsuit to Regency under a defense and indemnity provision in a Management Agreement. Regency submitted the tender to State Farm. State Farm denied coverage.
Associa sued State Farm. State Farm moved for summary judgment. State Farm first contended it had no duty to defend or indemnify because Associa was not an "insured" under the policy. The policy clarified that one was an insured "If you are designated in the Declarations as . . . (4) An organization other than a partnership, joint venture or limited liability company. . ." Associa was not designated in the Declarations or otherwise as a named insured.
The policy further provided an insured was "any organization while acting as your real estate manager but only with respect to liability for 'bodily injury'." This provision also did not apply because there was no allegation of bodily injury in the underlying lawsuit. Instead, Caven alleged that Associa overcharged him and other unit owners for copies of condominium documents. Even assuming Associa was acting as Regency's "real estate manager," Associa was not an insured under the policy because there was no allegation of "bodily injury" in the underlying lawsuit.
Further, the underlying lawsuit did not allege "property damage" or "personal injury." Therefore, the court granted State Farm's motion for summary judgment.