The insured's claim for breach of the implied covenant of good faith and fair dealing was dismissed by the trial court because it was based on the same conduct as the breach of contract claim. See Columbia Cas. Co. v. 3M Co., 2012 Minn. App. LEXIS 23 (Minn. Ct. App. March 26, 2012).
April 2012
Ensuing Losses From Faulty Workmanship Must be Covered
By Tred R. Eyerly on
Coverage for damages resulting from faulty workmanship in the construction of an apartment complex was at issue in The Bartram, LLC v. Landmark Am. Ins. Co., 2012 U.S. Dist. LEXIS 44535 (N.D. Fla. March 30, 2012).
The owner of the apartments, Bartram, had primary coverage and three layers of excess coverage. Each contract…
Ensuing Loss Provision Found Ambiguous
By Tred R. Eyerly on
After the insurer denied coverage in a homeowner's policy for construction defects under various exclusions, the court found the ensuing loss provision was ambiguous. Kesling v. Am. Family Mut. Ins. Co., 2012 U.S. Dist. LEXIS 38857 (D. Colo. March 22, 2012).
After purchasing a home from the sellers, the insureds noticed problems with the…
Insurer’s Motion to Deny Claim Based on Judicial Estoppel Fails
By Tred R. Eyerly on
The insurer's attempt to reject a claim due to inconsistent positions taken by the insured in two different matters failed in Rice v. Certain Underwriters at Lloyds, 2012, U.S. Dist. LEXIS 36445 (S.D. Tex. March 19, 2012).
The insured's home was damaged in 2008 during Hurricane Ike. The insured submitted a claim to Lloyds, but…
No Coverage for Property Damage That is Limited to Work Completed By Subcontractor
By Tred R. Eyerly on
The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S.
Pollution Exclusion Precludes Coverage For City’s Alleged Contamination of Drinking Water
By Tred R. Eyerly on
In an entertaining decision authored by Judge Posner, the Seventh Circuit affirmed the district court's denial of coverage based upon the pollution exclusion. Scottsdale Indem. Co. v. Village of Crestwood, 2012 U.S. App. LEXIS 5069 (7th Cir. March 12, 2012).
In 1985, Crestwood's mayor and other Village officials learned from state environmental authorities…
Allegations of Ensuing Loss Insufficient to Survive Motion to Dismiss
By Tred R. Eyerly on
The court considered whether damages to the plaintiffs' home caused by Chinese drywall were covered under their homeowners policy. Dupuy v. USAA Cas. Ins. Co., 2012 U.S. Dist. LEXIS 31890 (M.D. La. March 9, 2012).
The plaintiffs' complaint alleged that the Chinese drywall "emits odorous gases that cause damage to air-conditioner and…
No “Occurrence” Where Specific Breach of Construction Contract Claims
By Tred R. Eyerly on
Coverage for construction defects was denied because the underlying claims were strictly contract-based and did not arise from an occurrence. Secura Ins. v. Horizon Plumbing, Inc., 2012 U.S. App. LEXIS 4477 (8th Cir. March 5, 2012).
Weitz Company, LLC was the general contractor on a project for MH Metropolitan, LLC. Horizon Plumbing…
Hawaii Supreme Court Reaffirms Insurer’s Duty to Defend
By Tred R. Eyerly on
Although it did not break new ground, the Hawaii Supreme Court reaffirmed its strong commitment to the insurer's duty to defend in Hart v. Ticor Title Ins. Co., 2012 Haw. LEXIS 83 (Haw. March 27, 2012).
The Harts owned two lots in Ewa Beach. They purchased a title insurance policy from TICOR…