Mealey's Construction Defects Insurance

  • August 15, 2018

    Insured’s Alleged Knowing Conduct Does Not Constitute An ‘Occurrence,’ Judge Says

    CHICAGO — An insurer has no duty to defend because allegations of an insured’s knowing and intentional conduct in providing noncompliant lumber to construction projects do not constitute an “occurrence,” an Illinois federal judge ruled Aug. 10 (Lexington Insurance Co. v. Chicago Flameproof & Wood Specialties Corp., et al., No. 17-3513, N.D. Ill., 2018 U.S. Dist. LEXIS 135871).

  • August 14, 2018

    Judge: Ongoing Operations Exclusion Bars Coverage For Insured’s Water Damage

    SEATTLE — An ongoing operations exclusion precludes coverage for water damage caused by an insured, a Washington federal judge ruled Aug. 13, granting summary judgment to an insurer on breach of contract and bad faith claims (Diamond Construction LLC and Bellevue Park Homeowners Association v. Atlantic Casualty Insurance Co., No. 17-1408, W.D. Wash., 2018 U.S. Dist. LEXIS 136335).

  • August 13, 2018

    Insurer Sues Insured To Determine Duties For Construction Defects Case

    PORTLAND, Ore. — An insurer filed a declaratory judgment action on Aug. 10 in an Oregon federal court, regarding its duty to defend and indemnify an insured and others in a construction defects case (Scottsdale Insurance Co. v. Oakmont LLC, et al., No. 18-01484, D. Ore.).

  • August 13, 2018

    Insurer Owed Reimbursement For Insureds’ Defense Costs, Delaware State Judge Says

    WILMINGTON, Del. — A Delaware judge on Aug. 9 determined that an insurer is entitled to reimbursement for defense costs paid on behalf of its insureds because the insurer had no duty to defend the insureds under a contractors professional liability policy (Catlin Specialty Insurance Co. v. CBL & Associates Properties et al., No. N16C-07-166 PRW CCLD, Del. Super., 2018 Del. Super. LEXIS 342).

  • August 13, 2018

    Judge: Insurer Has No Duty To Indemnify Disputes Over Payment For Work

    SAN FRANCISCO — An insurer has no duty to indemnify two lawsuits arising out of disputes on work performed on condominium buildings, a California federal judge ruled Aug. 10, granting in part summary judgment to the insurer but denying judgment on the duty to defend in light of triable fact issues on several exclusions (United States Liability Insurance Co. v. Contempo Homeowners Association, No. 18-02722, N.D. Calif., 2018 U.S. Dist. LEXIS 135570).

  • August 10, 2018

    Judge Denies Insurer’s Request To Include Homeowners In No Duty To Indemnify Ruling

    FORT MYERS, Fla. — An insurer that was found not to have a duty to defend or indemnify a general contractor in a construction defects case on Aug. 9 was denied its request by a Florida federal judge to enter the judgment against not only the contractor but also the homeowners who filed the underlying case (Southern-Owners Insurance Co. v. MAC Contractors of Florida LLC, et al., No. 18-21, M.D. Fla., 2018 U.S. Dist. LEXIS 134072).

  • August 10, 2018

    Judge Declines To Dismiss Insurer’s Coverage Dispute Over Poor Work Allegations

    MONROE, La. — A Louisiana federal judge on Aug. 9 denied dismissal of a commercial general liability insurer’s coverage dispute regarding allegations that a subcontractor’s faulty work led to children being sick from excess moisture (Houston Specialty Insurance Co. v. Ascension Insulation & Supply Inc., et al., No. 17-1010, W.D. La., 2018 U.S. Dist. LEXIS 134558).

  • August 09, 2018

    Insurers File 3 Complaints For Equitable Contribution In Defense Of Defect Claims

    LOS ANGELES — Three lawsuits were filed by insurers on Aug. 8 in a California federal court asserting equitable contribution claims over defense costs for construction defects cases (St. Paul Fire and Marine Insurance Co., et al. v. American Safety Indemnity Co., No. 18-06794; St. Paul Fire and Marine Insurance Co., et al. v. Lexington Insurance Co., No. 18-06803; St. Paul Fire and Marine Insurance Co., et al. v. Lexington Insurance Co., No. 18-06799, C.D. Calif.).

  • August 08, 2018

    Insurers Seek Reversal Of Ruling On Equitable Subrogation Claim

    SACRAMENTO, Calif. — Insurers argue in a July 6 reply brief to a California appeals court that a state tax code does not preclude them from pursuing equitable and contractual subrogation claims against various subcontractors that allegedly owed a duty to defend a developer in an underlying construction defects case (Travelers Property Casualty Company of America, et al. v. Engel Insulation Inc., No. C085753, Calif. App., 3rd Dist.).

  • August 07, 2018

    Judge Grants In Part Dismissal Of Breach Of Contract Suit Against Insurer

    FORT MYERS, Fla. — A Florida federal judge on Aug. 6 granted in part an insurer’s motion to dismiss an insured’s breach of contract case but allowed an insured leave to amend (Marram Corp. v. Scottsdale Insurance Co., No. 18-204, M.D. Fla., 2018 U.S. Dist. LEXIS 131532).

  • August 06, 2018

    Judge Dismisses 64 Out Of Insurer’s 86 Claims Over Defective Clothes Dryers

    ALLENTOWN, Pa. — In a dispute over allegedly defectively manufactured clothes dryers, a Pennsylvania federal judge on Aug. 3 severed each of an insurer’s 86 claims and dismissed 64 claims over which the court lacks subject matter jurisdiction (Allstate Insurance Co. v. Electrolux Home Products, No. 18-00699, E.D. Pa., 2018 U.S. Dist. LEXIS 130241).

  • August 06, 2018

    5th Circuit: Insured Cannot Show Allocation Of Settlement Proceeds Between Damages

    NEW ORLEANS — An insured failed to meet its burden to show allocation of settlement proceeds between covered and noncovered damages from a courthouse construction project, the Fifth Circuit U.S. Court of Appeals held Aug. 2 (Satterfield and Pontikes Construction Inc., et al. v. United States Fire Insurance Co., No. 17-20513, 5th Cir., 2018 U.S. App. LEXIS 21488).

  • August 01, 2018

    Insurers Seek Equitable Contribution For Defense Costs Of Defects Lawsuit

    LOS ANGELES — Two insurers allege in a July 18 complaint filed in a California federal court that three other insurers owe equitable contribution for the defense of an underlying construction defects case against a mutual additional insured (St. Paul Mercury Insurance Co., et al. v. Everest National Insurance Co., et al., No. 18-06222, C.D. Calif.).

  • August 01, 2018

    No Coverage Owed For Deteriorating Foundation Walls, Federal Judge Says

    NEW HAVEN, Conn. — No coverage is owed to insureds seeking coverage for damages to their home’s foundation walls caused by a chemical reaction in the concrete used in the foundation because the insureds failed to prove that a collapse of the foundation will occur in the foreseeable future, a Connecticut federal judge said July 31 (Christopher D. Lester, et al. v. Liberty Mutual Fire Insurance Co., No. 16-909, D. Conn., 2018 U.S. Dist. LEXIS 127711).

  • August 01, 2018

    Judge Dismisses Negligence Cross-Claims In Insurer’s Subrogation Lawsuit

    PITTSBURGH — In an insurer’s subrogation action, a Pennsylvania federal judge on July 30 dismissed cross-claims against a city’s building code inspector for its alleged negligence in approving plans for a home’s renovation that resulted in a fire because the code inspector has governmental immunity (Great Northern Insurance Co. v. Whipple-Allen Real Estate, et al. v. Kellick Construction Co., et al., No. 18-41, W.D. Pa., 2018 U.S. Dist. LEXIS 126658).

  • July 31, 2018

    Judge Declines To Dismiss Or Stay Issue Of Insurer’s Duty To Indemnify Defects Claims

    MIAMI — A Florida federal judge on July 30 refused to dismiss or stay an insurer’s claims regarding the issue of its duty to indemnify underlying allegations of construction defects and deficiencies in a conversion of apartments to condominiums (Mt. Hawley Insurance Co. v. Maitland Center LLC, et al., No. 18-80452, S.D. Fla., 2018 U.S. Dist. LEXIS 126460).

  • July 30, 2018

    Judge: Insureds’ Intended Activities Do Not Constitute An ‘Occurrence’

    CLARKSBURG, W.Va. — Allegations of damages caused only by insureds’ intended activities do not arise from an “occurrence,” a West Virginia federal judge ruled July 25, finding that an insurer has no duty to defend or indemnify the insureds (Nautilus Insurance Co. v. GC&P Development LLC, et al., No. 17-60, N.D. W.Va., 2018 U.S. Dist. LEXIS 124333).

  • July 27, 2018

    Insurer Denied Amendment To Assert Contribution Claims Against 9 Insurers

    SEATTLE — A Washington federal judge on July 25 declined an insurer’s request to amend its answer to assert contribution claims against nine insurers who are no longer parties to a condominium association’s lawsuit seeking coverage for water damage (Quarterdeck Condominium Association of Apartment Owners v. Safeco Insurance Co., et al., No. 17-0999, W.D. Wash., 2018 U.S. Dist. LEXIS 124651).

  • July 27, 2018

    Federal Judge Refuses To Dismiss Breach Of Contract Dispute Against Insurer

    FORT MYERS, Fla. — A dispute over whether insurance policies show that a subcontractor’s insurer was an excess insurer to a contractor and, therefore, had no duty to defend or indemnify against construction defects claims should be decided on summary judgment, a Florida federal judge ruled July 26, denying a motion to dismiss (Alta Mar Condominium Association Inc., et al. v. Hartford Fire Insurance Co., et al., No. 18-359, M.D. Fla., 2018 U.S. Dist. LEXIS 124864).

  • July 27, 2018

    Subcontractor Denied Judgment On Retainage Claim By Federal Judge

    PHILADELPHIA — Regarding a contractor’s retainage claim against a subcontractor and its sureties on a delayed project, a Pennsylvania federal judge ruled July 24 that the subcontractor cannot rely on a pay-if-paid clause because the subcontractor prevented the occurrence of a condition precedent regardless of whether its actions were deliberate (Connelly Construction Corp. v. Travelers Casualty and Surety Company of America, et al., No. 16-555, E.D. Pa., 2018 U.S. Dist. LEXIS 123009).