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Mealey's Construction Defects Insurance

  • July 18, 2018

    Insurer Has Standing To Pursue Declaratory Judgment Claim, Judge Says

    ALBUQUERQUE, N.M — A commercial general liability insurer has standing to assert a declaratory judgment claim against a condominium association in a coverage dispute over an underlying construction defects action, a New Mexico federal judge ruled July 16 (United Fire and Casualty Co. v. Caskey Drywall NM LLC, et al., No. 17-1108, D. N.M., 2018 U.S. Dist. LEXIS 117982).

  • July 18, 2018

    Ohio High Court Hears Arguments In Insurance Defective Work Dispute

    COLUMBUS, Ohio — The Ohio Supreme Court heard oral arguments on June 12 in a dispute between a commercial general liability insurer, a contractor and a university over whether coverage exists for damages sustained in a construction project as a result of allegedly defective work caused by subcontractors (Ohio Northern University v. Charles Construction Services Inc. v. The Cincinnati Insurance Co., No. 2017-0514, Ohio Sup.).

  • July 17, 2018

    Federal Judge Stays Coverage Suit Over Claims Cell Phone Tower Damaged Building

    SEATTLE — Exercising inherent authority, a Washington federal judge on July 13 paused T-Mobile Northeast LLC’s lawsuit seeking coverage for alleged damage caused by a cell phone tower to allow two related lawsuits to proceed (T-Mobile Northeast LLC v. Selective Insurance Company of America, No. 17-1289, W.D. Wash., 2018 U.S. Dist. LEXIS 117694).

  • July 17, 2018

    Judge Says Only 1 Insurer May Have To Cover Claim For Foundation Deterioration

    ROCKVILLE, Conn. — A Connecticut state judge on June 28 determined that only one of five insurers may have to provide coverage to insureds for the deterioration of the insureds’ basement walls as a result of the oxidization of the concrete used to construct the basement’s walls (Richard N. Dino, et al. v. Safeco Insurance Company of America, et al., No. CV166010428S, Conn. Super., 2018 Conn. Super. LEXIS 1262).

  • July 13, 2018

    Judge Orders Review Of Insurer’s Documents In Water Damage, Mold Suit

    SEATTLE — In a water damage and mold coverage suit concerning an insurer’s denial of investigation costs, a Washington federal judge on July 12 ordered an in camera review of documents provided by the insurer to determine whether attorney-client privilege applies (Market Place North Condominium Association v. Affiliated FM Insurance Co., No. 17-625, W.D. Wash., 2018 U.S. Dist. LEXIS 116381).

  • July 11, 2018

    Insurer Has Duty To Defend Professional Negligence Claim, Judge Says

    HOUSTON — Under the eight-corners rule, a professional liability insurer has a duty to defend a monastery’s professional negligence claim against an insured contractor, a Texas federal judge ruled July 10, granting partial summary judgment to the contractor and the monastery (Everest National Insurance Co. v. Gessner Engineering LLC, et al., No. 17-2981, S.D. Texas, 2018 U.S. Dist. LEXIS 113849).

  • July 10, 2018

    District Court Erred In Finding For Excess Insurer In Chinese Drywall Suit, Contractor Says

    ATLANTA — The 11th Circuit U.S. Court of Appeals should reverse a district court’s ruling in favor of an excess insurer in a Chinese drywall coverage dispute because the district court failed to apply to correct standard of law in finding that the excess insurer has no duty to indemnify, a contractor argues in a July 9 brief (American Home Assurance Co. v. Gryphon Construction LLC et al., No. 18-12031, 11th Cir.).

  • July 6, 2018

    Judge Denies Insurer’s Default Judgment Request In Defects Coverage Case

    JACKSONVILLE, Fla. — A Florida federal judge on July 3 denied a commercial general liability insurer’s motions for default judgment against a subcontractor and condominium association in a coverage dispute regarding an underlying construction defects case (Auto-Owners Insurance Co. v. Environmental House Wrap Inc., et al., No. 17-817, M.D. Fla.).

  • July 2, 2018

    Panel Affirms Insurer Breached Duty To Defend Negligent Work Lawsuit

    CHICAGO — A commercial general liability insurer breached its duty to defend a negligent construction work case, an Illinois appeals panel held June 29, finding that the insurer was estopped from denying liability for a default judgment (Country Mutual Insurance Co. v. Badger Mutual Insurance Co., No. 1-17-1774, Ill. App., 1st Dist., 6th Div., 2018 Ill. App. Unpub. LEXIS 1118).

  • June 29, 2018

    Judge: Insurer Has No Duty To Defend Claims Against Insured’s Work

    NEW YORK — A construction contractor exception to a professional liability exclusion does not apply because an insured was not contracted to perform any construction work, a New York federal judge ruled June 27, finding that an insurer had no duty to defend a professional negligence claim (Liberty Insurance Corp. v. WSP USA Inc., No. 17-4398, S.D. N.Y., 2018 U.S. Dist. LEXIS 107896).

  • June 28, 2018

    9th Circuit: 3 Deductibles Apply To Insured’s Construction Defects Claims

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on June 25 that only three deductibles and not 636 deductibles applied to an insured for claims arising out of three construction defects lawsuits (ProBuilders Specialty Insurance Company, RRG v. Yarbrough Plastering Inc., et al., Nos. 16-16952 & 16-17141, 9th Cir., 2018 U.S. App. LEXIS 17226).

  • June 27, 2018

    Magistrate Judge Rejects Insurer’s Dismissal Of Fraud, Breach Of Contract Claims

    AUSTIN, Texas — In a dispute over a performance bond, a Texas federal magistrate judge on June 26 recommended that an insurer’s motion to dismiss fraud and breach of contract claims be denied (Hunt Construction Group Inc. v. Cobb Mechanical Contractors Inc., et al., No. 17-215, W.D. Texas, 2018 U.S. Dist. LEXIS 106080).

  • June 22, 2018

    Judge: ‘Damage To Your Work’ Exclusion Bars Coverage For Insured’s Defects

    FORT MYERS, Fla. — An insurer has no duty to defend or indemnify a general contractor in an underlying construction defects case, a Florida federal judge ruled June 21, finding that the “damage to your work” exclusion precludes coverage (Southern-Owners Insurance Co. v. MAC Contractors of Florida LLC, et al., No. 18-21, M.D. Fla., 2018 U.S. Dist. LEXIS 103659).

  • June 22, 2018

    ‘Damage To Your Work’ Exclusion Does Not Relieve Insurer’s Duty, Judge Says

    SEATTLE — A commercial general liability insurer has a duty to defend insureds in a construction defects lawsuit, a Washington federal judge ruled June 21, finding that the “damage to your work” exclusion does not apply (The Cincinnati Specialty Underwriters Insurance Co. v. Milionis Construction Inc., et al., No. 17-00341, E.D. Wash., 2018 U.S. Dist. LEXIS 104182).

  • June 21, 2018

    Coverage May Exist; Policy Covers Collapse Caused By Hidden Decay, Judge Says

    BRIDGEPORT, Conn. — An insurer’s motion to dismiss a complaint filed by insureds seeking coverage for their cracking foundation walls caused by a chemical reaction in the concrete must be denied because a possibility for coverage exists as the policy at issue provides coverage for collapse caused by hidden decay and defective construction materials, a Connecticut federal judge said June 20 (Mark C. Maki, et al. v. Allstate Insurance Co., No. 17-1219, D. Conn., 2018 U.S. Dist. LEXIS 102708).

  • June 21, 2018

    Faulty Work Exclusion Does Not Apply To Insured’s Loss, Magistrate Judge Says

    BOISE, Idaho — A faulty workmanship exclusion does not preclude coverage for an insured’s repair costs, an Idaho federal magistrate judge ruled June 18, granting summary judgment to an insured on its breach of contract claim and awarding it $177,431.99 (Engineered Structures Inc. v. Travelers Property Casualty Company of America, No. 16-00516, D. Idaho, 2018 U.S. Dist. LEXIS 102822).

  • June 20, 2018

    Insurer Appeals Ruling On Duty To Indemnify Default Judgment For Defects

    LOS ANGELES — In a dispute between two insurers over the duty to indemnify a default judgment in a construction defects case against an insured, one insurer argues to a California appeals court in a May 25 brief that the other cannot prevail against it in a direct action because the default judgment is void and not covered (The Insurance Company of the State of Pennsylvania v. American Safety Indemnity Co., No. B283684, Calif. App., 2nd Dist., Div. 8).

  • June 20, 2018

    Native Alaskan Village Sues Contractor Over Work Done On Hydroelectric Plant

    ANCHORAGE, Alaska — A Native Alaskan village and its council say in a June 18 federal court lawsuit that a construction company owes the village $450,000 for shoddy work done and then left unrepaired on the village’s hydroelectric plant (Native Village of Chignik Lagoon v. Orion Marine Contractors, Inc., et al., No. 3:18-cv-00140, D. Alaska).

  • June 20, 2018

    ‘Your Product’ Exclusion Bars Coverage For Costs To Repair Insured’s Units

    MINNEAPOLIS — Costs to repair and replace an insured’s insulating glass units (IGUs) are precluded by the “your product” exclusion, a Minnesota federal judge ruled June 18, granting and denying in part summary judgment to an insurer (National Union Fire Insurance Company of Pittsburgh, PA v. Viracon Inc., No. 16-482, D. Minn., 2018 U.S. Dist. LEXIS 101449).

  • June 20, 2018

    Insurers Allege Equitable Contribution Claim For 7 Construction Defects Cases

    LOS ANGELES — Four insurers filed an equitable contribution complaint on June 13 in a California federal court against another insurer for coverage of seven underlying construction defects cases (Travelers Property Casualty Company of America, et al. v. Lexington Insurance Co., No. 18-05232, C.D. Calif.).