This is a case where an insurance company was able to withdraw its defense based on its policy, which excluded condominiums and townhouses. In this case the developments were condominiums that had the appearance of detached, single-family homes. California Traditions, Inc. was the developer of a housing project. They hired Ja-Con Systems, Inc. to perform the rough framing work for 30 of the units in the development. Ja-Con was insured with a Comprehensive General Liability Policy by Clare-mont Insurance Company for the duration of the project. The owner of Ja-Con knew his policy did not cover work on condominium projects. Each of the units were freestanding with no shared walls, roofs, halls, or plumbing or electrical lines. To avoid "set-back" requirements for single family homes, the project was developed, marketed and sold as condominiums.
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