Mealey's Construction Defects Insurance

  • June 24, 2022

    Defects Coverage Dispute Dismissed With Prejudice After Settlement Reached

    PHOENIX — Without providing detail, a federal judge in Arizona on June 14 issued an order dismissing a commercial general liability insurer’s declaratory judgment action against its insured contractor after the parties stipulated to dismissal of the lawsuit after reaching an undisclosed settlement.

  • June 24, 2022

    Default Granted Against Stucco Contractor In Insurer’s Coverage Dispute

    ALLENTOWN, Pa. — A federal judge in Pennsylvania on June 22 granted default judgment in favor of an insurer and ruled that the insurer has no duty to defend or indemnify its insured contractor in an underlying lawsuit claiming that the insured’s stucco work resulted in damage to property because the property damage at issue was not caused by an “occurrence.”

  • June 22, 2022

    Third-Party Indemnification Claims In Insurer’s Subrogation Damages Suit Denied

    MIAMI — A federal judge in Florida on June 7 ruled that dismissal of third-party indemnification claims against a heating, ventilation and air conditioning (HVAC) subcontractor and its sister company electrical contractor stemming from a lawsuit brought by an insurer in subrogation for damages that resulted from an HVAC contractor’s alleged faulty installation of a temporary chiller and ensuing fire is unwarranted because a master construction subcontract the parties entered into requires that the subcontractors indemnify the contractor in the lawsuit.

  • June 17, 2022

    Some Claims In Contractor’s Water, Mold Damage Coverage Suit Allowed To Proceed

    DALLAS — A federal judge in Texas on June 14 issued a pair of opinions granting in part and denying in part an insurer’s motions for summary judgment and to exclude expert testimony in a coverage dispute stemming from The Travelers Lloyds Insurance Co.’s denial of coverage to a subcontractor for moisture and mold damages to a temporary building the subcontractor built for the U.S. government.

  • June 15, 2022

    Panel Affirms Dismissal Of Professional Negligence Claim Against Insurance Broker

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on June 14 affirmed a lower federal court’s dismissal of a professional negligence claim against an insurance broker in a lawsuit arising from claims that the construction firm insured’s negligence caused damages to a retaining wall, finding that the lower court did not err in concluding that the insured failed to establish a genuine issue of material fact as to whether it could prevail on its professional negligence claim.

  • June 10, 2022

    Insurers Granted Summary Judgment As To Only Certain Policies In Coverage Suit

    HONOLULU — Insurers are entitled to summary judgment with regard to several commercial liability insurance policies issued to a contractor for a construction project for which the contractor was later sued over several construction defects because no genuine issues of material fact exist showing that there has not been an “occurrence” as defined in those policies, a federal judge in Hawaii ruled May 2 in granting the insurers’ motion for partial summary judgment.

  • June 09, 2022

    Magistrate Recommends $602,191.80 Award For Builder To Defend Underlying Suit

    ORLANDO, Fla. — A federal magistrate judge in Florida on May 27 issued a report and recommendation, recommending that a homebuilder be awarded $602,191.80 in attorney fees, expenses and costs to defend against an underlying lawsuit over its subcontractor’s alleged defective stucco work on several homes in a subdivision, a reduction of 46.55% of the amount originally sought by the builder.

  • June 09, 2022

    Insurer’s Coverage Dispute Over Wall Collapse Dismissed After Settlement Reached

    SOUTH BEND, Ind. — Without providing further detail, a federal judge in Indiana on May 16 issued an order dismissing an insurer’s declaratory judgment lawsuit against its contractor insured and a property owner, in which the insurer alleged that it had no duty to defend or indemnify the contractor in an underlying property damage lawsuit claiming that the contractor’s negligence during demolition caused a wall to collapse based on a policy exclusion.

  • June 09, 2022

    Unambiguous Policy Exclusions Bar Coverage For Soil Subsidence Suit Judgment

    PRESCOTT, Ariz. — A commercial liability insurer is not responsible for payment of a judgment to homeowners in an underlying breach of warranty of workmanship suit against its insured because the policy in question excludes coverage for damages resulting from natural and man-made subsidence of land issues that resulted in construction defects issued to a home, a federal judge in Arizona ruled in partially granting the insurer’s summary judgment motion on May 24.

  • June 09, 2022

    Contractor Appeals Final Judgment In Duty To Defend Suit To 1st Circuit

    BOSTON — A contractor and two construction companies he owns on June 8 appealed a Massachusetts federal judge’s order of final judgment in favor of an insurer and two intervenor plaintiffs in a in a declaratory judgment lawsuit in which the insurer alleged that it owed the contractor and his companies no duty to defend in lawsuits accusing them of breach of contract in connection with construction defects at an apartment complex in New Jersey.

  • June 08, 2022

    District Court Properly Ruled That Insurer Had Duty To Defend, Contractor Argues

    ATLANTA — A federal district court did not err in ruling that allegations made in an underlying negligence and property damage lawsuit against an exterior glazing contractor and others, as well as allegations made by the contractor in a third-party complaint against one of its subcontractors in that action, triggered an insurer’s duty to defend the contractor in the underlying suit, the contractor argues in a June 6 reply/cross-appellee brief filed in the 11th Circuit U.S. Court of Appeals.

  • June 08, 2022

    Parties Stipulate To Dismiss Insurer’s Coverage Suit After Settlement Reached

    PHOENIX — Parties in a commercial general liability insurer’s declaratory judgment action against its insured contract, as well as a cross-action, asked a federal judge in Arizona on June 6 to dismiss the actions with prejudice, stating that such relief is warranted since the parties reached a settlement agreement, with each party bearing their own attorney fees and costs.

  • June 08, 2022

    State Attorney-Client Privilege Law Does Not Apply In Water Damage Suit

    SEATTLE — A federal magistrate judge in Washington on May 26 declined to apply Washington law of attorney-client privilege and conduct an in camera review to determine whether an insurer has appropriately withheld certain documents based on attorney-client privilege in a builders risk insurance dispute over the insurer’s denial of claims related to damages sustained to two buildings under construction.

  • June 07, 2022

    Insurers Say Coverage Barred For Lake Pollution Caused By Construction Activities

    NEWNAN, Ga. — No coverage is owed to an insured seeking coverage for an underlying suit alleging that a lake was polluted by nearby construction activities in which the insured was involved because the underlying suit does not allege an occurrence and the policies at issue include pollution exclusions that bar coverage for the underlying suit, insurers contend in a May 31 complaint filed in Georgia federal court.

  • May 31, 2022

    Court: Louisiana Law Doesn’t Preclude Construction Contract’s Subrogation Waiver

    NEW ORLEANS — Indemnity and subrogation provisions are separate and unique terms, and a contract between a building owner and contractor waiving the latter does not violate Louisiana law, a state appeals court said April 20 in affirming a trial court opinion.

  • June 02, 2022

    Misrepresentations In Contractor’s Insurance Application Deemed Material

    NASHVILLE, Tenn. — A federal judge in Tennessee on May 31 awarded an insurer summary judgment in its suit seeking a declaration that it has no duty to defend or indemnify a contractor insured in an underlying suit over defects in the construction of a firearms store and shooting range’s concrete pad, ruling that there are no material issues of fact about whether the contractor made material misrepresentations in his application for insurance.

  • June 01, 2022

    Builders Risk Coverage Dispute Dismissed After Parties Reach Settlement

    SAN FRANCISCO — A federal judge in California on May 31 dismissed a dispute over a builders risk insurer’s denial of coverage for the cost of repairing fractured support beams used in the construction of a transit center after the parties in the action agreed to settle their claims.

  • June 01, 2022

    Summary Judgment Denied As To Damages, Expenses In Concrete Slab Repair Suit

    NEW ORLEANS — A federal judge in Louisiana on May 5 issued a pair of orders denying a commercial general liability insurer’s motions for summary judgment in a suit filed against it and its insured over the insured’s allegedly negligent pouring of a concrete foundation as part of the construction of a grocery store, ruling that material facts exist precluding the relief the insurer seeks.

  • June 01, 2022

    Indemnification Claim In Negligent Work Coverage Dispute Unripe

    BIRMINGHAM, Ala. — An insurer’s claim for declaratory relief, in which it seeks a determination that it is not required to indemnify its insureds for any damages against them in an underlying lawsuit stemming from the insureds’ alleged negligent work on a construction site, is not ripe and must be dismissed because liability has not been determined in the underlying suit, a federal judge in Alabama ruled May 17 in dismissing the claim.

  • June 01, 2022

    Homeowners’ Water Damage Suit Against Insurer Brought To A Close

    FAYETTEVILLE, Ark. — A lawsuit brought in Arkansas federal court against a homeowners insurer that denied coverage for a water damage claim based on the policy’s construction defects exclusion was dismissed May 23 after the parties stipulated to dismissal.