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Mirpad v. California Insurance Guarantee Association9/19/2005
CERTIFIED FOR PUBLICATION
In this appeal, we apply the rule that the plain meaning of insurance policy language may be established by considering such language in the context of the entire policy, even though, in other contexts, it might have a different meaning. The question presented by this case is the proper interpretation to be given to the "wrongful eviction" portion of the "personal injury" coverage provisions contained in a standard commercial general liability (CGL) policy. The defendant, appellant and cross-respondent, California Insurance Guarantee Association (CIGA), argues that due to the specific language of the policy there can be no coverage liability for a claim for wrongful eviction of an "organization" (in this case, a corporation), because coverage is only extended under the policy to a claim by a natural person. The plaintiffs, respondents and cross-appellants, on the other hand, insist that it would be improper to read so narrowly the "personal injury" coverage provisions. They contend that there is coverage for a wrongful eviction claim whether it is brought against the insured by a "person" or an "organization." The trial court, on stipulated facts, sided with plaintiffs and entered judgment in their favor.
An examination of the policy demonstrates that when the word "person" is used in isolation elsewhere in the policy, it clearly means a natural person. Under long settled principles of policy construction, which require us to consider disputed language in the context of the policy as a whole, it should be given the same meaning in the disputed clause before us. When the disputed language is so construed, its plain meaning is explicit, clear and unambiguous. Whatever contrary expectations of coverage Mirpad, as a commercial landlord, may have had, they could not have been objectively reasonable. Thus, we conclude that the trial court erred and the construction of the disputed policy language advocated by CIGA is correct. We will therefore reverse the judgment.
FACTUAL AND PROCEDURAL BACKGROUND
In December 1999, Mirpad purchased a commercial office building located at 10027 South 51st, Foothills Plaza, Phoenix, Arizona (the building). One of the tenants in the building was POS Systems, Inc., a corporation (POS), which had leased 39,000 square feet in the building (the premises).
After Mirpad purchased the building, it retained Allred to manage it. In April 2000, Allred notified POS that it was in default under the terms of its lease. Later in that month, Allred locked POS out of the premises. At about the same time, POS filed a Chapter 7 petition in bankruptcy . One Anthony Mason was appointed as the bankruptcy trustee.
In December 2000, the trustee filed an adversary proceeding against the several plaintiffs alleging multiple causes of action, including wrongful termination, breach of the lease and fraudulent transfer (i.e., wrongful lockout). In April 2001, a second lawsuit was filed against the plaintiffs. This was filed in the Arizona Superior Court (Maricopa County). The plaintiff in that action was one Ken MacDonald (the founder, president and CEO of POS). His complaint concerned the same acts, facts and transactions alleged in the Mason action. There is no dispute that these two actions (collectively, the underlying actions) alleged injuries arising from, and damages and other relief for, an alleged wrongful eviction.
At the time of POS's alleged eviction from the premises, both Mirpad and Allred were named insureds in a CGL policy issued by United Pacific Insurance Company (United Pacific) with a coverage limit of $1 million. The policy included coverage for "Personal Injury and Advertising In
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