The trial court's holding that there was no occurrence based on claims from faulty workmanship was reversed by the appellate division of the Pennsylvania Superior Court. The underlying claims were based on product liability tort claims, not faulty workmanship. Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh, PA., 2013 Pa. Super.
2013
Sixth Circuit Finds No Coverage For Faulty Workmanship Under Kentucky Law
By Tred R. Eyerly on
Following Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013).
Walmart hired a contractor to build a new store. The contractor hired Kay and Kay…
Actual Cash Value in Determining Loss Does Not Include Depreciated Cost of Labor
By Tred R. Eyerly on
The Arkansas Supreme Court was asked a certified question by the federal district court: In determining the "actual cash value" of a covered loss, may the insurer depreciate the costs of labor when the term "actual cash value" is not defined in the policy? Adams v. Cameron Mut. Ins. Co., 2013 Ark. LEXIS…
After Deciding No Duty to Defend Additional Insured, Court Finds Duty to Indemnify
By Tred R. Eyerly on
The Delaware Superior Court found the insurer had a duty to indemnify the additional insured for settlement proceeds in a wrongful death suit. Premcor Ref. Group v. Matrix Serv. Indus. Contrs., 2013 Del. Super. LEXIS 517 (Del. Super. Ct. Nov. 18, 2013).
Premcor hired Pro-Tech to coordinate work at an oil refinery.
New Article On Construction Defect Coverage In Hawaii and Beyond
By Tred R. Eyerly on
Here is a link to my recent article in the ABA Insurance Coverage Litigation Committee's Coverage Journal, September-October 2013, entitled, "Construction Defect Coverage in Hawaii – A Window to the Nationwide Debate."
Following Buss, Court Grants Insurer’s Request for Reimbursement of Defense Costs
By Tred R. Eyerly on
The federal district court for Northern California granted the insurer's motion for reimbursement of funds advanced to the insured under a reservation of rights. Great Am. Ins. Co. v. Chang, 2013 U.S. Dist. LEXIS 159197 (N.D. Cal. Nov. 6, 2013).
The Changs operated a dry cleaner business on their property from 1977…
This Blog is How Old?
By Tred R. Eyerly on
This blog enters its seventh year this week. We started in December 2007, 730 posts ago.
Six years is an eternity in the blogosphere. But the blogs of two of Damon Key colleagues, Robert Thomas (http://www.inversecomdemnation.com) and Mark Murakami (http://www.oceanlawhawaiil.com), pre-date this blog. And our two newest bloggers, David…
Property Policy Proceeds Assignable after Sale of Property
By Tred R. Eyerly on
The Seventh Circuit found "replacement cost" proceeds were still payable after the insured's sale of damaged property in its unrepaired state. Edgewood Manor Apt. Homes LLC v. RSUI Indem. Co., 2013 U.S. App. LEXIS 21939 (7th Cir. Oct. 25, 2013).
Edgewood Manor Associates, Ltd. owned an apartment complex in Gulfport, Mississippi that…
Agent Liable for Failure to Secure Adequate Coverage
By Tred R. Eyerly on
The Illinois Appellate Court found that an insurance agent was liable under both a state statute and common law for failure to obtain coverage requested by the insured. Skaperdas v. Country Cas. Ins. Co., 2013 Ill. App. LEXIS 711(Ill.Ct. App. Oct. 7, 2013).
The insured's girlfriend was added to his policy as…
No Duty to Defend Claims for Injunctive Relief
By Tred R. Eyerly on
The California Court of Appeal ruled that an insurer does not have a duty to defend a lawsuit seeking injunctive relief and no compensatory damages. San Miguel Cmty. Assn. v. State Farm Gen. Ins. Co., 2013 Cal. App. LEXIS 836 (Cal. Ct. App. Oct. 1, 2013).
San Miguel was a nonprofit residential…