Mealey's Construction Defects Insurance

  • March 18, 2021

    No Coverage Owed For Mold Damage In Insured Hotel, Federal Judge Says

    ATLANTA — No coverage is owed for mold damage discovered in an insured hotel because the mold damage, caused by various construction defects, incepted prior to the applicable policy period and was not caused by an external event for which coverage would be afforded, a Georgia federal judge said March 15.

  • March 17, 2021

    5th Circuit Asks Texas High Court If Exception To 8-Corners Rule Is Permissible

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on March 12 asked the Texas Supreme Court to determine whether the exception to the eight-corners rule created in the federal appeals court’s decision in Northfield Ins. Co. v. Loving Home Care Inc. is permissible under Texas law and, if the exception can apply, whether a court can consider extrinsic evidence to determine when a date of occurrence happens when deciding whether a duty to defend exists.

  • March 09, 2021

    Insurer Not Required To Pay $900,000 Judgment To Couple Over Building Defects

    BIRMINGHAM, Ala. — A federal judge in Alabama ruled March 4 that Nationwide Mutual Fire Insurance Co. is not required to pay $900,000 to a couple for claims of negligence and wantonness brought against a general contractor for the defective construction of their home, finding that the couple was unable to show the amount of damages that arose out of the covered injuries.

  • March 08, 2021

    Builders:  Insurers’ Denials Of Defense To Defects Suit Breached Policies

    LAS VEGAS — Two homebuilders sued nine insurance companies in federal court in Nevada on March 2, complaining that the insurers breached the terms of policies issued to subcontractors who built a community recreation center by refusing to defend them in a construction lawsuit brought by a homeowners association or by not fully reimbursing the builders for defense costs.

  • March 03, 2021

    Insurer’s Contribution Suit Toward Contractor’s Settlement Time-Barred

    SAN FRANCISCO — A federal judge in California on Feb. 25 ruled that an insurer’s suit seeking contribution from another insurance company toward the defense and settlement of a suit brought against a concrete contractor that both companies issued policies to was untimely because it was brought more than two years after the contractor was dismissed from an underlying lawsuit and because the selective tender rule was inapplicable.

  • March 03, 2021

    Appeals Court Rejects Insurer’s Argument That Performance Bond Was Void

    SAN FRANCISCO — A California appeals panel on Feb. 26 sustained a trial court judge’s ruling that an insurer must satisfy its surety obligations under a performance bond it issued to a state housing authority, finding that the insurer could not argue on appeal that the bond was void under California law because the bid for the rehabilitation project was submitted by an unlicensed contractor.

  • March 03, 2021

    Contractor’s Breach Of Contract Claim Against Insurer Untimely, Judge Says

    JACKSON, Tenn. — A federal judge in Tennessee on March 1 awarded summary judgment to an insurer in a breach of contract suit brought by a roofing contractor over the insurer’s failure to fully pay for repairs to a church damaged by a hailstorm, finding that the contractual two-year statute of limitations in the policy issued to the church began to run on the day the insurer partially denied the claims.

  • March 02, 2021

    Duty To Defend Additional Insured Ended When Project Was Completed, Judge Says

    LOS ANGELES — A federal judge in California on Feb. 24 granted an insurer’s motion for summary judgment in a suit brought by a construction manager seeking indemnification and defense in a school district’s lawsuit, finding that the construction manager was not listed as an additional insured on the policy at issue and that the agreement between the subcontractor and the school district required that the construction manager be included as an additional insured only until the project was complete.

  • March 02, 2021

    Untimely Notice Of Defects Suit Precludes Coverage To Subcontractor, Insurer Says

    TAMPA, Fla. — An insurer says in a lawsuit filed in federal court in Florida on Feb. 3 that it is not required to defend or indemnify a carpentry and siding subcontractor from coverage in a suit brought against it by a general contractor because the policyholder did not provide notice to the insurer of the suit until it was already found in default.

  • March 02, 2021

    Insurer: Damage Stemming From Improperly Installed Exterior Not Covered By Policy

    ATLANTA — An insurer says in a declaratory judgment lawsuit filed Feb. 22 in federal court in Georgia that it should not be required to defend or indemnify a subcontractor accused by a general contractor of improperly installing an exterior insulation and finishing system (EIFS) on a North Carolina hotel because the alleged damages stemming from the work are excluded from a commercial general liability policy.

  • March 02, 2021

    11th Circuit Affirms Insurer’s Summary Judgment Ruling Over Faulty Concrete

    ATLANTA — The 11th Circuit U.S. Court of Appeals on Feb. 26 upheld an insurer’s summary judgment award in a declaratory judgment suit brought by a concrete maker alleging that its insurer had a duty to indemnify and defend it in a state court lawsuit brought against a masonry subcontractor, holding that the insurer was not required to defend or indemnify its insured because the subcontractor did not complain of property damage as a result of allegedly defective concrete.

  • March 01, 2021

    Homebuilder Sues Insurer Over Failure To Defend, Indemnify It In Defects Suit

    SHERMAN, Texas — A homebuilder filed a breach of contract lawsuit against its insurer in federal court in Texas on Feb. 23, saying the insurer breached the terms of a policy it issued to the builder by failing to defend and indemnify it against a state court lawsuit brought by a couple over construction defects.

  • February 26, 2021

    Judge Finds Insurer Has No Duty To Indemnify Contractor Under Performance Bond

    BOSTON — A federal judge in Massachusetts on Feb. 12 awarded summary judgment to an insurance company named as a surety in a performance bond, finding that the insurer has no duty to indemnify a general contractor for almost $3 million in damages for a subcontractor’s allegedly faulty work because the contractor did not satisfy a condition precedent that required it to terminate the agreement with the subcontractor.

  • February 24, 2021

    Judge Limits Sprinkler Installer’s Cross-Claims In Suit Over Frozen Pipe

    NEW HAVEN, Conn. — A federal judge in Connecticut on Feb. 22 granted in part a general contractor’s motion to dismiss cross-claims brought by the installer of a sprinkler system in a suit over water damages caused by a frozen sprinkler supply line, finding that the system installer could pursue a claim for contribution from the general contractor but not indemnification.

  • February 22, 2021

    Contractor Awarded Summary Judgment In Suit Over Frozen Sprinkler Head

    NEW YORK — A New York justice wrote in an order filed Feb. 16 that a general contractor accused by the subrogee insurer of the owner of a suite housing a dermatology practice and others of failing to install a heater that would have prevented a sprinkler head from freezing and subsequently bursting, resulting water damage, was entitled to summary judgment because the contractor sufficiently showed that it performed its work in accordance with plans prepared by the architect and designer.

  • February 11, 2021

    Magistrate: Hotel Operator’s Motion To Dismiss Insurer’s Suit Should Be Denied

    SAN ANTONIO — A federal magistrate judge in Texas on Feb. 9 recommended denying a hotel operator’s motion to dismiss an insurer’s third-party lawsuit against it, finding that the insurer sufficiently states claims for breach of contract and conversion based on the hotel operator’s failure to pay a contractor an agreed upon $195,000 to resolve the contractor’s breach of contract suit over remediation work for water damage.

  • February 03, 2021

    Nevada Appeals Court Reverses Ruling Striking Hose Adaptor Maker’s Trial Request

    CARSON CITY, Nev. — The Nevada Court of Appeals on Jan. 25 reversed a trial court judge’s ruling striking a swivel hose adaptor maker’s request for trial de novo in a subrogation lawsuit brought by an insurance company to recover damages it paid to an insured, finding that the judge’s opinion about how the manufacturer acted during an arbitration hearing was inconsistent.

  • February 03, 2021

    Insurer Says Homebuilder’s Texas Insurance Code Claims Lack Specificity

    DALLAS — An insurer says in a Feb. 2 motion to dismiss filed in federal court in Texas that causes of action for violations of the Texas Insurance Code brought by Pulte Homes of Texas LP and Centex Homes should be dismissed because the allegations underlying the claims do not satisfy the heightened pleading requirement of Federal Rule of Civil Procedure 9(b).

  • February 03, 2021

    Judge Dismisses Insurer’s Suit Over Coverage For Construction Defects

    GULFPORT, Miss.  — A federal judge in Mississippi on Feb. 1 dismissed without prejudice an insurer’s declaratory judgment lawsuit against a contractor and a couple accusing the contractor of construction defects, finding that the court should abstain from presiding over the case after the homeowners amended a state court lawsuit to assert claims against the insurer.

  • February 01, 2021

    Developer Dropped From Insurer’s Suit Over Duty To Defend Against Builder’s Suit

    PHOENIX — A federal judge in Arizona on Jan. 19 dismissed without prejudice a defendant developer in a declaratory judgment lawsuit brought by its insurer and allowed a homebuilder to file a third-party complaint against the developer’s insurance carriers.