Mealey's Construction Defects Insurance

  • July 06, 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 02, 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.).

  • June 20, 2018

    Judge: Couple Can Pursue Contract Claim Against Insurer Over Cracked Concrete

    NEW HAVEN, Conn. — A couple can pursue a claim for breach of contract against their insurer for its denial of coverage to repair cracks in the concrete of the basement walls of their home, a federal judge in Connecticut ruled June 6, finding that the damage to the plaintiffs’ home could have arose before 2006 when their policy provided coverage for losses stemming from the collapse of a building (Stephen Rosenberger, et al. v. Amica Mutual Insurance Co., No. 17-cv-612, D. Conn., 2018 U.S. Dist. LEXIS 95345).

  • June 19, 2018

    Judge: No Coverage For Insured’s Costs From Nondefective Repairs

    SALT LAKE CITY — Two insurers owe no coverage to an insured contractor for costs incurred from repairing nondefective parts of construction projects as a result of the process to remove and replace a subcontractor’s nonconforming lumber, a Utah federal judge ruled June 18 (Big-D Construction Midwest LLC v. Zurich American Insurance Co., No. 16-952, D. Utah).

  • June 19, 2018

    Insurers Ask U.S. High Court Question In Dispute Over Faulty Workmanship

    WASHINGTON, D.C. — Insurers petitioned the U.S. Supreme Court on June 6 to answer a question in a dispute in which a federal appellate court predicted how a state high court would rule over whether a subcontractor’s faulty work that caused damage to an insured’s own work can constitute an “occurrence” (Aspen Insurance [UK] Ltd, et al. v. Black & Veatch Corp., No. 17-1662, U.S. Sup., 2018 U.S. S. Ct. Briefs LEXIS 2279).

  • June 18, 2018

    Contractual Liability Exclusion Does Not Bar Coverage, Arizona High Court Affirms

    PHOENIX— The Arizona Supreme Court on June 14 found that a homeowners insurance policy’s “contractual liability” exclusion does relieve an insurer of its duty to defend its builder-vendor insured against an underlying negligent excavation claim arising from rockslide damage, finding that the negligence allegation arises from the common-law duty to construct a home as a reasonable builder would (Dennis E. Teufel v. American Family Mutual Insurance Company, et al., No. CV-17-0190-PR, Ariz. Sup., 2018 Ariz. LEXIS 187).

  • June 18, 2018

    Judge Certifies Question On Collapse In Insureds’ Breach Of Contract Suit

    HARTFORD, Conn. — In a breach of contract dispute over coverage for cracking in a basement, a Connecticut federal judge certified on June 15 a question to the state’s high court on what constitutes “substantial impairment of structural integrity” for purposes of applying a collapse provision in a homeowners insurance policy (Steven L. Vera, et al. v. Liberty Mutual Fire Insurance Co., No. 16-72, D. Conn., 2018 U.S. Dist. LEXIS 100548).

  • June 11, 2018

    3rd Circuit: Insurer Has No Duty To Defend, Indemnify Faulty Workmanship Claim

    PHILADELPHIA — A commercial general liability insurer has no duty to defend or indemnify faulty workmanship allegations against an insured subcontractor for problems experienced by a condominium development, the Third Circuit U.S. Court of Appeals ruled June 6, because the faulty work is not covered as an “occurrence” (Lenick Construction Inc. v. Selective Way Insurance, 16-1891, 3rd Cir., 2018 U.S. App. LEXIS 15197).

  • June 06, 2018

    Insureds, Insurer Accuse Contractor Of Faulty Work On Solar Panel System

    WILMINGTON, Del. — Homeowners and their insurer filed an amended complaint on June 1 in a Delaware trial court against a general contractor allegedly responsible for the defective installation of a solar panel system for their home (Domenic P. DiStefano, et al. v. KW Solar Solutions Inc., et al., No. N16C-11-015, Del. Super.).