In Global Modular Inc. v. Kadena Pacific, Inc.,
__________ Cal.App.5th ____ (September 8, 2017), the California
Fourth District Court of Appeal affirmed in part, and reversed in
part, the trial court's entry of judgment in connection with a
coverage dispute arising out of the repair of modular units
manufactured and installed by subcontractor, Global Modular, Inc.
("Global"), pursuant to a subcontract with general
contractor, Kadena Pacific, Inc. ("Kadena"). The
parties' dispute arose out of an underlying claim, wherein,
Kadena had entered into a contract with the United States
Department of Veterans Affairs ("VA") to oversee
construction of its Center for Blind Rehabilitation in Menlo Park,
California. Kadena hired Global to build, deliver and install
53 modular units that would comprise the rehabilitation
center. Because Kadena had hired a different subcontractor to
install the roofing, Global agreed to deliver the units covered
only by a roof deck substrate – a