‘Tract Housing’ Exclusion Bars Coverage For Insureds’ Defects, 5th Circuit Affirms

Mealey's (August 12, 2016, 10:23 AM EDT) -- NEW ORLEANS — A commercial general liability insurance policy’s “tract housing” precludes coverage to a group of homeowners who settled a construction defect lawsuit with its insured and then sought payment, the Fifth Circuit U.S. Court of Appeals ruled Aug. 10 (Jay Broughton, et al. v. Castlepoint National Insurance Co., formerly known as SUA Insurance Co. & Jennifer Trevino, et al. v. Castlepoint National Insurance Co., formerly known as SUA Insurance Co., No. 15-20708, 5th Cir.; 2016 U.S. App. LEXIS 14746).

(Opinion available. Document #69-160902-005Z.)...
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