BRESEE HOMES, INC., an Oregon corporation, Petitioner on Review, v. FARMERS INSURANCE EXCHANGE, a California corporation, Respondent on Review., 353 Ore. 112

Summary

This case involved the interpretation of a commercial general liability policy. The insured was sued by homeowners and tendered the claims to the insurer, who denied the tender, citing a policy exclusion. The insured claimed a breach of contract, but the trial court granted the insurer partial summary judgment. The appellate court affirmed. On appeal, the court reversed. Regarding the duty to defend, the insured has no burden to set forth facts beyond those that were alleged in the homeowners' complaint. The appellate court found that the insured had a burden to produce evidence that an exception to the exclusion applied, but the appellate court was mistaken in this analysis. When the insured tendered the claims, only the facts the homeowners alleged and the terms of the policy governed the duty to defend. The policy's products-completed operations hazard exclusion did not eliminate the insurer's duty to defend the insured. The policy provided a basis for coverage of property damage ...