Federal Judge: Developer Owed Duty To Defend, But Questions On Coverage Remain

Mealey's (September 9, 2021, 9:54 AM EDT) -- CHARLOTTE, N.C. — In an insurance coverage dispute arising out of a lawsuit by homeowners alleging defects in site preparation for and foundations of their homes, the insurer of a subcontractor owes a duty to defend the developer, but questions of fact remain regarding whether either side breached that duty and whether a duty to indemnify and limitations on coverage existed, a federal judge in North Carolina ruled Aug. 27, denying a motion to dismiss and partially granting and partially denying summary judgment motions....