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SEATTLE TUNNEL v. GREAT LAKES REINSURANCE

No. 78691-1-I (consolidated with No. 79060-9-I and No. 80260-7-I).

492 P.3d 843 (2021)

SEATTLE TUNNEL PARTNERS, a Washington joint venture, Petitioner, Washington State Department of Transportation, Appellant-Petitioner, Hitachi Zosen U.S.A. Ltd., Intervenor-Petitioner, v. GREAT LAKES REINSURANCE (UK) PLC, a foreign insurance company; Zurich American Insurance PLC, a New York insurance company; Starr Surplus Lines Insurance Company; a Illinois insurance company; Indian Harbor Insurance Company, a Connecticut insurance company; Allianz Global Corporate & Specialty SE, a foreign insurance company; Torus Insurance (UK) Limited, a foreign insurance company; Partner re Ireland Insurance Limited, a foreign insurance company; Does 1-100, individual and/or corporate members of Syndicate 382 at Lloyd's, London; and Does 101-200, individual and/or corporate members of Syndicate 1882 at Lloyd's, London, Respondents.

Court of Appeals of Washington, Division 1.

Filed August 2, 2021.

Attorney(s) appearing for the Case

Guy M. Bowman , Attorney at Law, P.O. Box 40113, Olympia, WA, 98504-0113, Karl Francis Oles , Bart Weldon Reed , Rachel Dunnington Groshong , Stoel Rives LLP, 600 University St. Ste. 3600, Seattle, WA, 98101-4109, David R. Goodnight , Jill Diane Bowman , Steel Rives LLP, 600 University St. Ste. 3600, Seattle, WA, 98101-3197, for Appellant.

Dale Lawrence Kingman , Matthew Franklin Pierce , Gregory David Pendleton , John Douglas Cadagan , Guinevere Becker Bogusz , Gordon Tilden Thomas & Cordell, LLP, 600 University St. Ste. 2915, Seattle, WA, 98101-4172, Haley K. Krug , Kirton McConkie, 999 W Main St. Ste. 100, Boise, ID, 83702-9001, Joseph Luciana , Samantha Brutout , DFL Legal, 3rd Floor, 20 Stanwix Street, Pittsburg, PA, 15222, Leonard J. Feldman , Peterson Wampold Rosato Feldman Luna, 1501 4th Ave. Ste. 2800, Seattle, WA, 98101-3677, Karl Francis Oles , Bart Weldon Reed , Rachel Dunnington Groshong , Stoel Rives LLP, 600 University St. Ste. 3600, Seattle, WA, 98101-4109, David R. Goodnight , Jill Diane Bowman , Stoel Rives LLP, 600 University St. Ste. 3600, Seattle, WA, 98101-3197, Daniel Wilder Galvin , Attorney At Law, P.O. Box 11011, Olympia, WA, 98508-1011, Guy M. Bowman , Attorney at Law, P.O. Box 40113, Olympia, WA, 98504-0113, for Petitioner.

Michael K. Mccormack , Bullivant Houser Bailey, 925 4th Ave. Ste. 3800, Seattle, WA, 98104-1129, Matthew Gonzalez , Zelle LLP, 45 Broadway, Suite 720, New York, NY, 10006, Philip Albert Talmadge , Talmadge/Fitzpatrick, 2775 Harbor Ave. Sw, Third Floor Ste. C, Seattle, WA, 98126-2138, Dan Millea , Zelle LLP, 500 Washington Ave. S, Suite 4000, Minneapolis, MN, 55415, for Respondents.

Richard Ottesen Prentke , Vs L. Woolston , Nicholas Peter Gellert , Perkins Coie LLP, 1201 3rd Ave. Ste. 4900, Seattle, WA, 98101-3095, Vivek Chopra , Perkins Coie, 700 Thirteenth Street Nw, Suite 600, Washington, DC, 20005-3960, Lester Brown , 3150 Porter Drive, Palo Alto, CA, 94304, for Appellant Intervenor.

Richard Ottesen Prentke , Vs L. Woolston , Nicholas Peter Gellert , Perkins Coie LLP, 1201 3rd Ave. Ste. 4900, Seattle, WA, 98101-3095, Dale Lawrence Kingman , Matthew Franklin Pierce , Gregory David Pendleton , John Douglas Cadagan , Miles C. Bludorn , Guinevere Becker Bogusz , Gordon Tilden Thomas & Cordell, LLP, 600 University St. Ste. 2915, Seattle, WA, 98101-4172, Haley K. Krug , Kirton McConkie, 999 W Main St. Ste. 100, Boise, ID, 83702-9001, Leonard J. Feldman , Peterson Wampold Rosato Feldman Luna, 1501 4th Ave. Ste. 2800, Seattle, WA, 98101-3677, for Other Parties.

PUBLISHED OPINION

¶ 1 In 2011, Seattle Tunnel Partners (STP) contracted with the Washington State Department of Transportation (WSDOT) to construct a tunnel to replace the Alaskan Way Viaduct in Seattle. As part of the agreement, STP procured builder's risk insurance coverage (Policy). Section 1 of the Policy concerns the...

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