101933P.pdf   08/18/2011  Liberty Mutual Insurance Co.  v.  Pella Corporation
   U.S. Court of Appeals Case No:  10-1933
                          and No:  10-2065
   U.S. District Court for the Southern District of Iowa - Des Moines   
   [PUBLISHED] [Smith, Author, with Gruender and Benton, Circuit Judges]
   Civil Case - declaratory judgment. Looking at the allegations in the
   complaint, as required under Iowa law, to determine whether coverage
   exists, the policies provide for reimbursement of some defense costs and
   is not dependent upon a determination whether an occurrence has been
   established. The district court did not err in concluding Pella did not
   have to exhaust all of its available insurance coverage before Liberty
   Mutual would owe a duty to reimburse defense costs. Because the two
   class action suits did not allege property damage caused by an occurrence,
   but rather alleged defectively designed and construction, Liberty Mutual
   did not owe Pella a duty to reimburse its costs in defending either action. 
   Bad-faith claims fail because Liberty Mutual had an objectively
   reasonable basis for denying the claim.