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GREAT AMERICAN INS. CO. v. FERNDALE DEV. CO., INC.

No. C-463.

523 P.2d 979 (1974)

GREAT AMERICAN INSURANCE COMPANY, a Colorado corporation, Petitioner, v. FERNDALE DEVELOPMENT CO., INC., and Shroyer Construction Co., Inc., Colorado corporations, Respondents.

Supreme Court of Colorado, En Banc.

Rehearing Denied July 15, 1974.

Attorney(s) appearing for the Case

Yegge, Hall & Evans, Don R. Evans, Robert E. Dean, Jr., Samuel David Cheris, Denver, for petitioner.

Costello & Kofoed, P.C., David L. Kofoed, William R. Dowhan, Denver, for respondents.

GROVES, Justice.

The facts of this case are not in dispute. Ferndale Development Company owned certain property in Dillon, Colorado, that was adjacent to a city water line. Ferndale had been constructing condominiums on its property when a valve on the water line ruptured causing water to inundate the footings and foundations of Ferndale's partially completed structures. Great American Insurance Company insured Ferndale's property.

When Great American refused...

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