Our prior post reported on the Fifth Circuit's certified question to the Louisiana Supreme Court regarding anti-assignment provisions in policies assigned to the State. Louisiana distributed funds from the "Road Home" program to Louisiana homeowners to repair uninsured and under-insured property damaged by hurricanes. Before funds were issued, the homeowners had to sign a
July 2011
Defense for Additional Insured Not Barred By Sole Negligence Provision
By Tred R. Eyerly on
A general contractor was entitled to a defense as an additional insured when the underlying complaint did not allege it was solely negligent. A-1 Roofing Co. v. Navigators Ins. Co., 2011 Ill. App. LEXIS 656 (Ill. Ct. App. June 24, 2011).
A-1 was the general contractor for a roof resurfacing job at…
Bound by Group Builders, Federal District Court Finds No Occurrence
By Tred R. Eyerly on
The homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home. State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011). The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence. State Farm agreed to…
After Breaching its Duty to Defend, Insurer Must Indemnify
By Tred R. Eyerly on
In a brief decision analyzing Oregon law, the Ninth Circuit determined that once an insurer breaches its duty to defend, it must indemnify. See Desrosiers v. Hudson Speciality Ins. Co., 2011 U.S. App. LEXIS 12591 (9th CIr. June 21, 2011).
The victim secured a judgment against the insured after he was beaten…
Governor Signs All Insurance-Related Legislation
By Tred R. Eyerly on
When the Hawaii State legislature ended its session in May, we reported here on the insurance-related bills that passed. The Governor had until July 12, 2011, to sign pending legislation.
In looking back, we see that the Governor signed all of the insurance-related bills passed in recent legislative session. This includes HB 924…
Texas Law Bars Coverge Under Homeowner’s Policy for Mold Damage
By Tred R. Eyerly on
Although the insurer paid for some of the mold damage at the insured's home, the Fifth Circuit eventually determined the homeowner's policy did not cover such damage. Rooters v. State Farm Lloyds, 2011 U.S. App. LEXIS 12306 (5th Cir. June 15, 2011).
The policy excluded loss caused by hail to personal property…
Illinois Court Determines Insurer Must Defend Property Damage Caused by Faulty Workmanship
By Tred R. Eyerly on
The Illinois Court of Appeals determined the insurer must defend allegations of property damage arising from faulty workmanship. Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Unpub. LEXIS 1443 (Ill. Ct. App. June, 20, 2011).
Larsen was a subcontractor for Weather-Tite in a condominium building. Weather-Tite installed windows on the…
Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions
By Tred R. Eyerly on
The homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured's crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used…
Exclusions Bar Coverage for Damage Caused by Chinese Drywall
By Tred R. Eyerly on
The insured homeowners were unsuccessful in arguing around the policy's exclusions when seeking coverage for damage caused by Chinese drywall. Ross v. C. Adams. Constr. & Design, L.L.C., 2011 La. App. LEXIS 769 (La. Ct. App. June 14, 2011).
Before the insureds purchased and moved into their home, it was renovated. After moving…