UNPUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

LIBERTY MUTUAL INSURANCE

COMPANY,

Plaintiff-Appellee,

v.

TAUBMAN COMPANY, INCORPORATED;

FAIRFAX ASSOCIATES; CONTINENTAL

INSURANCE CORPORATION,

No. 95-1879

Defendants-Appellants,

v.

COLUMBIA ART STORE EQUIPMENT

COMPANY; RECORD WORLD

ENTERPRISES, INCORPORATED, d/b/a

Social Circle; OTIS JAMES OWENS,

Defendants.
LIBERTY MUTUAL INSURANCE

COMPANY,

Plaintiff-Appellant,

v.

TAUBMAN COMPANY, INCORPORATED;

FAIRFAX ASSOCIATES; CONTINENTAL

INSURANCE CORPORATION,

No. 95-1881

Defendants-Appellees,

v.

COLUMBIA ART STORE EQUIPMENT

COMPANY; RECORD WORLD

ENTERPRISES, INCORPORATED, d/b/a

Social Circle; OTIS JAMES OWENS,

Defendants.

Appeals from the United States District Court

for the Eastern District of Virginia, at Alexandria.

Leonie M. Brinkema, District Judge.

(CA-94-1023-A)

Argued: March 8, 1996

Decided: April 5, 1996

Before WILKINSON, Chief Judge, and HALL and LUTTIG,

Circuit Judges.

_________________________________________________________________

Affirmed by unpublished per curiam opinion.

_________________________________________________________________

COUNSEL

ARGUED: Steven Walter Bancroft, TRICHILO, BANCROFT,

MCGAVIN, HORVATH & JUDKINS, P.C., Fairfax, Virginia, for

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Appellants. Joseph Doane Roberts, SLENKER, BRANDT, JENNINGS & JOHNSTON, Merrifield, Virginia, for Appellee. ON

BRIEF: Dawn E. Boyce, TRICHILO, BANCROFT, MCGAVIN,

HORVATH & JUDKINS, P.C., Fairfax, Virginia, for Appellants.

_________________________________________________________________

Unpublished opinions are not binding precedent in this circuit. See

Local Rule 36(c).

_________________________________________________________________

OPINION

PER CURIAM:

Liberty Mutual Insurance Company ("Liberty Mutual"), filed the

instant declaratory judgment action against, among others, Taubman

Company, manager of the Fair Oaks Mall, Fairfax Associates, owner

of the Fair Oaks Mall, and their insurer, Continental Insurance Corporation ("Continental"), regarding liability arising out of a settlement

paid to Otis Owens by Taubman and Fairfax Associates for personal

injuries sustained while Otis was performing renovations for Record

World Enterprises/Square Circle ("Record World"), a tenant at the

Fair Oaks Mall. Owens, an employee of Columbia Art Store Equipment, Inc., was injured during renovations of the Record World store

when he came into contact with a High Voltage Air Conditioning unit

while he was installing a drop ceiling. Liberty Mutual, which provided insurance to Record World, and Continental each sought a

declaratory judgment that the other was liable for the $500,000 settlement with Owens. The district court determined that both the Liberty

Mutual and Continental policies provided primary coverage for the

accident and, pursuant to the terms of the policies, the liability would

be split equally. Both Continental and Liberty Mutual appealed, each

arguing that the other is liable for the entire settlement. Finding no

reversible error, we now affirm.

The district court determined that the accident at issue in this case

took place on "leased premises" as that term is defined in the lease

because, under the lease agreement between Record World and Fair-

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fax Associates, all area between the permanent ceiling and the floor

is a part of the leased premises and because the accident took place

while Owens was installing a drop ceiling below the permanent ceiling. Since the terms of Liberty Mutual's policy to Record World covered Taubman and Fairfax Associates as additional insureds for

"liability arising out of the ownership, maintenance or use of that part

of the premises leased to" Record World, J.A. at 219, the district court

determined that the Liberty Mutual policy provides primary coverage

for the liability arising out of the Owens' accident. See J.A. at 286.

Moreover, although the terms of lease required that Record World

obtain an insurance policy that was to be primary over other policies

for accidents occurring within the leased premises, nothing in either

the Liberty Mutual or Continental policy specifies that the Continental policy was to be only an excess policy for accidents occurring

within the leased premises. Thus, the district court determined that the

Continental policy, by its terms, also provided primary coverage for

the Owens' accident. See J.A. at 313-14.

Since both insurance policies contained a clause that where other

primary insurance exists there would be contribution by equal shares,

the district court determined that the liability should be divided

equally between Liberty Mutual and Continental. See J.A. at 315.

We have carefully considered the arguments raised in the briefs

and at oral argument and find no reversible error. Accordingly, we

affirm the judgment of the district court on the reasoning of that court.

AFFIRMED

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