August 2011

   Coverage for damage caused by the installation of Chinese drywall was the issue in Dragas Mgt. Corp. v. Hanover Ins. Co., 2011 U.S. Dist. LEXIS 80178 (E.D. Va. July 21, 2011).

   Dragas built housing developments. Dragas hired Porter-Blaine Corp. to supply and install drywall for the homes in two of its developments.

   After the trial court determined the insurers had no coverage obligations for alleged construction defects, a ruling that was subsequently reversed, it was still possible to demonstrate the insurers acted in bad faith.  See Lennar Corp. v. Transamerica Ins. Co., 2011 Ariz. App. LEXIS 123 (Ariz. Ct. App. July 5, 2011).

   Lennar oversaw…

   “Insurance Bad Faith Claims” will be the title of the seminar at which I will be a co-presenter on August 18, 2011. The seminar is hosted by Sterling Education Services.  My topics will be: (1) the development of the tort of bad faith; and (2) the elements of a bad faith case.

   Registration…

   The insured was a developer of a residential project.  Mid-Continent Cas. Co. v. Siena Home Corp., 2011 U.S.Dist. LEXIS 79132 (M.D. Fla. July 8, 2011).  The homeowners filed suit, alleging their homes had defectively constructed exterior wall assemblies which allowed moisture and water to penetrate. 

   Mid-Continent filed suit for a declaratory judgment…

   Interpreting Missouri law, a federal district court determined that property damage arising from faulty workmanship did not arise from an occurrence. Employers Mut. Casualty Co. v. Luke Draily Constr. Co., 2011 U.S. Dst. LEXIS 69929 (W.D. Mo. June 29, 2011).

   Draily Construction Company was hired as general contractor on a hotel construction…