The Fifth Circuit found that Transocean's policies, not the indemnity provisions of Transocean's and BP's drilling contract, controlled the extent to which BP was covered as an additional insured for its operations under the drilling contract. Ranger Ins., Ltd v. Transocean Offshore Deepwater Drilling, Inc., 2013 U.S. App. Ct. LEXIS 4512 (5th Cir.
March 2013
Subcontractor Exception to Your Work Exclusion Paves the Way for Coverage
By Tred R. Eyerly on
In a brief opinion, the Second Circuit vacated the district court's denial of coverage for construction defects. Scottsdale Ins. Co. v. R.I. Pools Inc., 2013 U.S. App. LEXIS 5680 (2nd Cir. March 21, 2013).
The insured, R.I. Pools, employed outside companies to supply concrete and to shoot the concrete into the ground.
Limitation on Coverage for Payment of Damages Creates Ambiguity
By Tred R. Eyerly on
Unable to discern the meaning of a provision stating that payment of damages would be made "through a trial but not any appeal", the court found an ambiguity. Parker v. Am. Family Ins. Co., 2013 U.S. Dist. LEXIS 9085 (D. Ore. Jan. 23, 2013).
The homeowners sued the general contractor for defective…
Federal Court Predicts Coverage In Nevada for Damage Caused by Faulty Workmanship
By Tred R. Eyerly on
Methodically analyzing the damage claims, the federal district court largely denied the insurers' motions for summary judgment for coverage of construction defect claims. Big-D Constr. Corp. v. Take It for Granite Too, 2013 U.S.Dist. LEXIS 8377 (D. Nev. Jan. 22, 2013).
Big-D was the general contractor for a remodeling project of International…
Federal Court Rejects Insurer’s Argument that Wisconsin Has Adopted the Manifestation Trigger for Property Policy
By Tred R. Eyerly on
The federal district court disagreed with the insurer's strident claim that Wisconsin followed the manifestation trigger for deciding coverage under a homeowner's policy. Strauss v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 224 (E.D. Wis. Jan. 2, 2013).
Several years after their house was constructed, the insureds discovered water damage. Chubb denied…
Factual Issues Prevent Insurer’s Motion to Deny Coverage for Failure to Cooperate
By Tred R. Eyerly on
The Washington Supreme Court reversed a summary judgment ruling for the insurer based upon the insured's failure to cooperate due to genuine factual issues. Staples v. Allstate Ins. Co., 2013 Wash. LEXIS 69 (Wash. Jan. 24, 2013).
The insured's van was stolen. Inside the van was a large collection of work tools.
Policy’s Arbitration Provision Unenforceable in Washington
By Tred R. Eyerly on
The Washington Supreme Court held that the arbitration provision in James Rivers' policy was unenforceable. State of Washington, Department of Transportation v. James River Ins. Co., 2013 Wash. LEXIS 66 (Wash. Jan. 17, 2013).
The Washington State Department of Transportation (WSDOT) was an additional insured on a policy issued by James River.