KIRKHAM, MICHAEL & ASSOCIATES, INC., a corporation, Continental Casualty Company, a corporation, Plaintiffs, and The City of Rapid City, South Dakota, Involuntary Plaintiff, v. The TRAVELERS INDEMNITY COMPANY, a corporation, and Maryland Casualty Company, a corporation, Defendants, 361 F. Supp. 189
Summary
Plaintiff engineering firm brought declaratory judgment action when defendant insurers refused to defend in suit filed against plaintiff by city. Plaintiff had drawn up plans with city for construction of facility. City complained that due to plaintiff's negligence, facility was deficient. Defendants contended policies did not afford coverage as they were not for professional liability insurance. Defendants conceded that "accident" as term was used in policies occurred, but issue was when accident occurred and whether any coverage was afforded plaintiff at that time. Defendants argued no damage or "accident" occurred until after date facility was taken over by city. Thus, accident occurred during time period when policies excluded coverage for professional liability. Court held while plaintiff's conduct may constitute continuous course of negligence, there was no continuous course of alleged "accidents" as plaintiff suggested. Any injury by accident occurred when city took over ...