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Mealey's Construction Defects Insurance

  • 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 9, 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 8, 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 7, 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 6, 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 6, 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 1, 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 1, 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 1, 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).

  • July 25, 2018

    No Coverage Owed For Cracking Of Basement Walls, Federal Judge Says

    HARTFORD, Conn. — An insurer has no duty to provide coverage to its insureds for the cracking of the concrete used in the home’s basement walls because the insureds failed to allege that a sudden or abrupt collapse occurred as required by policy’s collapse provision, a Connecticut federal judge said July 24 in granting the insurer’s motion to dismiss (Kenneth Andrew, et al. v. Allstate Insurance Co., No. 17-1192, D. Conn., 2018 U.S. Dist. LEXIS 123328).

  • July 24, 2018

    Subcontractor Opposes U.S. High Court Question In Case Over Faulty Workmanship

    WASHINGTON, D.C. — A subcontractor argues to the U.S. Supreme Court in a July 10 brief that there is no split on how federal appellate courts predict how a state high court would rule over whether 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.).

  • July 24, 2018

    9th Circuit Affirms Award For HOA, Holds Fees Were Covered By Policy

    HONOLULU — The Ninth Circuit U.S. Court of Appeals on July 20 affirmed a trial court’s award of fees to a homeowners association (HOA), holding that fees incurred by property owners seeking coverage for damage caused by water leaks were within the scope of the policy (Association of Apartment Owners of The Moorings Inc. v. Dongbu Insurance Co., Ltd., No. 16-16666, 9th Cir., 2018 U.S. App. LEXIS 20251).

  • July 23, 2018

    Panel: Insurers Have No Duty To Indemnify Subcontractor’s Negligence

    SAN FRANCISCO — An agreement was void insofar as it provided that insurers were required to indemnify a subcontractor for its negligence, the Ninth Circuit U.S. Court of Appeals ruled July 20, upholding the entry of summary judgment to insurers against a county as assignee of the subcontractor’s claims (First Mercury Insurance Co., et al. v. Westchester Surplus Line Insurance Co., et al., No. 16-35888, 9th Cir., 2018 U.S. App. LEXIS 20253).

  • July 20, 2018

    Panel Enters Judgment In Favor Of Insurer In Defects Coverage Dispute

    LAKE CHARLES, La. — Reversing and remanding a lower court’s ruling, a Louisiana appeals panel on July 18 entered summary judgment in favor of an insurer and dismissed a third-party demand for the insurer’s alleged failure to provide coverage for defect claims (Shane Pierce, et al. v. Irma M. Rodriguez, et al., No. 17-681, La. App., 3rd Cir., 2018 La. App. Unpub. LEXIS 214).

  • July 20, 2018

    Panel Reverses Arbitration Ruling In Contract Dispute Against Contractor, Surety

    LAKELAND, Fla. — In a breach of contract dispute involving a contractor, subcontractor and a surety, a Florida appeals panel on July 18 reversed an order finding that an arbitration clause in a subcontract is void and unenforceable because if the Federal Arbitration Act (FAA) applies, it preempts a Florida statute (Sacshe Construction and Development Corp. v. Affirmed Drywall Corp., et al., No. 2D17-4276, Fla. App., 2nd Dist., 2018 Fla. App. LEXIS 9998).