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Mealey's Construction Defects Insurance

  • April 17, 2024

    Subcontractor’s Insurer Splits Defense, Indemnification Claims After Judge’s Stay

    FORT LAUDERDALE, Fla. — A day after a federal judge in Florida granted a subcontractor and contractor’s motion to stay a construction insurance dispute insofar as an insurer’s duty to indemnify the subcontractor, the insurer filed a second amended complaint separating its claims related to the duty to indemnify from its claims related to the duty to defend.

  • April 16, 2024

    11th Circuit Affirms That Policy Exclusions Don’t Bar Defense For Contractor

    ATLANTA — For the third time, the 11th Circuit U.S. Court of Appeals found that a contractor’s commercial general liability insurer owed the contractor a defense from claims that the contractor improperly constructed a couple’s home, finding that there was uncertainty at the time the underlying suit was filed whether two policy exclusions would apply.

  • April 16, 2024

    Parties In Mold, Construction Defects Suit File Supplemental Authorities In 11th Circuit

    ATLANTA — An insurer and insureds involved in a dispute over coverage for mold damage discovered in an insured hotel filed supplemental authorities on April 15 in the 11th Circuit U.S. Court of Appeals, citing cases that each side claims are relevant to the issue of whether the policy at issue provides coverage for losses caused by a construction defect even if the cost to fix the defect is not covered.

  • April 11, 2024

    11th Circuit Upholds Denial Of New Trial In Insurance Dispute Over Damage

    ATLANTA — In an unpublished April 10 opinion, a panel of the 11th Circuit U.S. Court of Appeals upheld a federal judge’s denial of an insurer’s request for judgment as a matter of law or a new trial, finding that there was sufficient evidence to support the jury’s nearly $170,000 verdict that established damage to a church’s buildings was caused by a hurricane and not faulty work.

  • April 11, 2024

    HOA Seeks Reconsideration Of Lack Of Standing In Construction Insurance Dispute

    JACKSONVILLE, Fla. — A homeowners’ association asks a federal judge in Florida to reconsider a finding that it lacked standing to seek a declaratory judgment in a construction insurance dispute where an insurer seeks a declaration that it owes no indemnification to a subcontractor that worked on homes operated by the HOA.

  • April 05, 2024

    Connecticut Appeals Court: No Allegation Of ‘Property Damage’ In Insurance Dispute

    HARTFORD, Conn. — A Connecticut appeals panel affirmed a lower court’s ruling that an insurer had no duty to defend a modular home developer for allegedly improperly installed windows, finding that the underlying counterclaims brought by the homeowners against the developer in an action to foreclose on a mechanic’s lien do not allege “property damage” caused by an “occurrence” under the terms of the insurer’s policy.

  • April 05, 2024

    Some Third-Party Claims In Construction Insurance Suit Dismissed After Settlements

    BATON ROUGE, La. — A federal judge in Louisiana dismissed with prejudice claims between multiple third parties in a construction insurance dispute stemming from damages from a sprinkler leak after the parties filed joint motions indicating that the claims had been resolved.

  • April 05, 2024

    9th Circuit Dismisses Water Damage Insurance Appeal After Parties Settle

    SEATTLE — The Ninth Circuit U.S. Court of Appeals dismissed an appeal of an insurance dispute between insurers and a condominium owners association insured over water damage after the parties stipulated to a voluntary dismissal.

  • April 05, 2024

    Condo Developer Tells 10th Circuit It Should Affirm Insurance Dispute Ruling

    DENVER — A condominium developer tells the 10th Circuit U.S. Court of Appeals that an insurer uses “semantic shell games” to argue that it does not owe the developer damages in its appeal of a jury’s $2.54 million award in the developer’s favor, saying the insurance policy at issue covered all costs associated with repair.

  • April 05, 2024

    Insurer Tells 11th Circuit Coverage Barred For Contractor By Policy Exclusion

    ATLANTA — A contractor’s insurer tells the 11th Circuit U.S. Court of Appeals that it should uphold a Florida federal judge’s ruling that it owed no duty to defend the contractor or a subcontractor due to a policy exclusion in a suit stemming from the subcontractor’s alleged faulty installation of cladding and glazing systems in a construction project in its answer to the contractor’s appeal.

  • April 04, 2024

    Judge: No Contribution To Subcontractor’s Former Insurer Due To Policy Exclusions

    BEAUMONT, Texas — A federal judge in Texas dismissed with prejudice a subcontractor’s insurer’s complaint seeking equitable contribution from another insurer in an arbitration proceeding, adopting a pair of reports and recommendations from a federal magistrate judge who found that no coverage is owed because of policy exclusions related to suits seeking contribution.

  • April 04, 2024

    Coverage Owed For Mold Damages, Insureds Reiterate In Corrected Reply Brief

    ATLANTA — In a corrected reply brief, filed with the permission of the 11th Circuit U.S. Court of Appeals, insureds reiterate their argument that a district court erred in finding that no coverage is owed for mold damage discovered in an insured hotel because the policy at issue provides coverage for losses caused by a construction defect even if the cost to fix the defect is not covered.

  • April 02, 2024

    Federal Judge Rules Subcontractor Stated No Claims Against Insurer In Suit

    ATLANTA — A federal judge in Georgia dismissed one of two insurers from a complaint brought by a subcontractor claiming that it was owed coverage for the collapse of structural steel during the construction of a building, finding that the subcontractor raised no claims against the insurer; the judge also said the subcontractor’s failure to respond to multiple motions in the case raises a question regarding whether it has abandoned prosecution.

  • April 02, 2024

    Parties Refile Stipulation Of Dismissal In Worker Injury Coverage Dispute

    NEW YORK — Per a New York federal judge’s order, a subcontractor, a property owner and a construction manager on April 1 refiled their stipulation of dismissal of the claims between them in the subcontractor’s lawsuit arising from personal injury actions brought by two of its workers.

  • April 02, 2024

    Federal Judge Dismisses Insurance Dispute Over Windows Due To Pending Garnishment

    LINCOLN, Neb. — A federal judge in Nebraska dismissed a complaint brought by an insurance company seeking a declaration it owed no indemnification to a company accused of faulty work in its installation of windows in a home, finding that it would be inappropriate to enter judgment while garnishment proceedings are pending elsewhere.

  • April 02, 2024

    Contractor Appeals Finding It Owes $2.3 Million To Insurer For Arbitration Award

    NEW YORK — A contractor is appealing to the Second Circuit U.S. Court of Appeals a New York federal judge’s upholding of an arbitration panel’s award of a $2.3 million judgment in favor of the contractor’s insurers as part of a settlement with a subcontractor the insurers said provided faulty concrete work for a construction project.

  • April 02, 2024

    Federal Judge Finds No Coverage Owed From Insurer Due To Tract Housing Exclusion

    TACOMA, Wash. — Adopting a pair of reports and recommendations issued by a magistrate judge, a federal judge in Washington granted an insurer’s motion for summary judgment, finding that coverage for a development company from claims of faulty work brought by a group of homeowners is barred by a policy exclusion related to the construction of tract housing.

  • April 01, 2024

    Federal Judge: Insurer Correct To Deny Coverage In Dispute Over Mold

    LAS VEGAS — A federal judge in Nevada on March 29 granted a contractor’s professional liability insurer’s motion for summary judgment, dismissing all claims against it in a mold and moisture damage coverage dispute after finding that the contractor violated the plain terms of the policy by incurring more than $1 million in repair costs without first seeking consent from the insurer.

  • March 29, 2024

    Insurer, Contractor Settle Dispute Over Faulty Concrete Claims

    MIAMI — After the parties filed a notice of settlement, a Florida federal magistrate judge on March 28 closed a case where the magistrate judge previously found that an insurer’s policy does not bar coverage to a contractor accused of defective work on a Florida highway.

  • March 29, 2024

    7th Circuit Grants Voluntary Dismissal Of Insurance Dispute Over Failed Pavement

    CHICAGO — After the parties said they had reached a settlement, the Seventh Circuit U.S. Court of Appeals dismissed an appeal brought by a subcontractor’s insurer that sought reversal of an Illinois federal judge’s finding that an underlying complaint involving the failure of pavement at a Michigan outlet mall did not allege an “occurrence” or “property damage” to trigger a second insurer’s duty to defend.

  • March 28, 2024

    Judge Rules Contractor ‘Willfully’ Failed To Respond To Insurer’s Suit

    ABERDEEN, Miss. — A federal judge in Mississippi denied a contractor’s motion to set aside the entry of default against him, finding that the contractor “willfully defaulted” on repeated notifications about a lawsuit brought by a commercial property insurer seeking to recover money from a contractor that the insurer paid to its insured after a roof the contractor built collapsed.

  • March 27, 2024

    Judge Dismisses Construction Defects Insurance Suit After Parties Agree To Settle

    OAKLAND, Calif. — After the parties notified the court that they had reached a global settlement, a federal judge in California on March 26 dismissed with prejudice the case between two excess insurers and a construction firm and related entities that sought a defense for a series of construction defect claims.

  • March 27, 2024

    Federal Judge: Ambiguities Mean Insurer Owes Defense To Damaged Home’s Owners

    SAN DIEGO — A California federal judge granted in part a couple’s motion for partial summary judgment, finding that a renovator’s insurer owes them a duty to defend and indemnify due to damages caused to the couple’s duplex home while the renovator was replacing the roof because an ambiguously worded policy exclusion regarding apartments does not bar coverage.

  • March 26, 2024

    Companies Appeal Finding They Are Owed No Defense From Subcontractor’s Insurer

    LOS ANGELES — A building owner and a general contractor have appealed a California judge’s decision dismissing their lawsuit seeking payment from a subcontractor’s insurer after the judge agreed with the insurer that coverage was barred by a policy exclusion related to damage caused by the subcontractor’s faulty work.

  • March 26, 2024

    Federal Judge: Policy Exclusions Don’t Bar Coverage For Bridge Damage

    TAMPA, Fla. — A federal judge in Florida denied a subcontractor’s excess liability insurer’s motion for judgment on the pleadings, agreeing with a federal magistrate who said in a report and recommendation that several policy exclusions do not preclude the insurer from providing a defense to the subcontractor from claims that its work caused damage to girders on a Florida bridge.