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Liberty Ins. Corp. v. WSP USA Inc.

Insurer Need Not Defend Defendant in Suit Over Tunnel Borer Damaged by Well's Steel Casing

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OPINION AND ORDER Plaintiff Liberty Insurance Corporation filed this action against Defendant WSP USA, Inc. seeking a declaration that WSP’s insurance policy does not obligate Liberty to defend WSP in a separate underlying lawsuit. Both parties have moved for summary judgment. For the reasons that follow, Liberty’s motion is granted, and WSP’s motion is denied.I. BackgroundThe following facts are taken from the parties’ joint stipulation of facts and the operative complaint in the underlying action. These facts are undisputed unless otherwise noted.A. The Underlying ActionIn 2001, the Washington State Department of Transportation (“WSDOT”) hired WSP to evaluate the repair or replacement of the Alaskan Way Viaduct, a highway project in Seattle. (Dkt. No. 32-2 (“SOF”)8.)1 Among other things, WSP agreed to develop an environmental impact statement and to perform “associated design work” for the viaduct project. (SOF9.) WSP subcontracted with an engineering and land surveying company, Shannon & Wilson (“S&W”), to “conduct extensive geotechnical and hydrogeological exploration, tests, and studies” in the viaduct project area. (SOF

10, 12.)In 2002, S&W, through its subcontractor, Holt Drilling, drilled and installed several water wells along the Alaskan Way Viaduct, including “Test Well # 2,” which had an 8-inch diameter steel well casing. (SOF13.) WSP and S&W then prepared several geotechnical reports associated with the viaduct project. (SOF

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