Opinion ID: 859167
Heading Depth: 2
Heading Rank: 1

Heading: The Parties and the Underlying Action

Text: Because we write primarily for the parties, we set forth only the facts relevant to this appeal. Donnelly distributes newspapers, advertisements, and other paper circulars in Philadelphia, Pennsylvania. Donnelly purchased the Policy from American Western, providing coverage for commercial tort liability and losses to commercial property. The Policy contains a provision (the “Premises Provision”) restricting coverage to bodily injuries “arising out of . . . [t]he ownership, maintenance or use” of 1301-05 N. Howard Street, Philadelphia, Pennsylvania 19122 (“Howard Street Premises”) and operations “necessary or incidental” to those premises. App. 32.1 Donnelly‟s Howard Street Premises is a regional warehouse that serves as a drop point for Donnelly‟s distributors to pick up materials and deliver them to designated neighborhoods. In November 2007, Donnelly was sued by a woman who claimed that she was injured when she slipped and fell on plastic ties that bind the materials Donnelly distributes, and that its employees negligently discarded. The complaint in the Underlying Action claimed that the accident occurred on the pavement near 5353 Saul 1 The parties also dispute the effect of a provision excluding coverage for “„bodily injury‟ . . . due to the rendering or failure to render [the professional services of paper distributing].” App. 69. Because we hold that the Premises Provision is dispositive of this case, we do not reach that issue. 2 Street. The parties do not contest that these premises are not the same as the Howard Street Premises. American Western agreed to fund Donnelly‟s defense of the Underlying Action and appointed counsel, but reserved its rights and defenses under the Policy. Eventually, American Western filed this action in the District Court seeking a declaratory judgment that the Premises Provision bars coverage of the Underlying Action and that American Western is under no duty to fund Donnelly‟s defense of, nor to indemnify Donnelly for, any loss resulting from the Underlying Action. A settlement was reached in the Underlying Action while this case was pending in the District Court.