In a much anticipated decision, the Texas Supreme Court ruled that a general contractor who agrees to perform its work in a good and workmanlike manner does not "assume liability" for damages arising out of its defective work so as to trigger the Contractual Liability Exclusion. Ewing Constr. Co., Inc. v. Amerisure Ins. Co.
January 2014
Bad Faith Claim For Independent Contractor’s Reduced Loss Assessment Survives Motion to Dismiss
By Tred R. Eyerly on
The insured's bad faith claim based upon the insurer's alleged use of an independent contractor to assess the amount of loss in order to lower the amount paid survived a motion to dismiss. Williamson v. Chubb Indem. Ins. Co., 2013 U.S. Dist. LEXIS 178022 (E.D. Pa. Dec. 19, 2013).
The insureds' home…
Coverage Doomed After Failing Obtain Insurer’s Consent for Settlement
By Tred R. Eyerly on
The Fourth Circuit affirmed the district court's determination that there was no duty to indemnify after the insured settled without consent of the insurer. Perini/Tompkins Joint Venture v. ACE American Ins. Co., 2013 U.S. App. LEXIS 24865 (4th Cir. Dec. 16, 2013).
The insured, a joint venture, was hired as manager for…
Insurer Not Entitled to Summary Judgment on Water Damage Claims
By Tred R. Eyerly on
Issues of fact surrounding the applicability of various exclusions prevented the insurer from securing summary judgment on claims for water damage. Babai v. Allstate Ins. Co., 2013 U.S. Dist. LEXIS 175336 (W.D. Wash. Dec. 13, 2013).
The insured noticed water damage to various areas of her home during remodeling. Allstate denied the…
Defense Owed for Pollution Caused by Farmer’s Manure
By Tred R. Eyerly on
The Wisconsin Court of Appeals found that a defense was owed to a farmer for pollution allegedly caused by use of manure. Wilson Mut. Ins. Co. v. Falk, 2013 Wis. App. LEXIS 1931(Wis. Ct. App. Dec. 11, 2013).
The insured used manure from cows as fertilizer for his fields. The state Department…
City Covered From Lawsuits Filed After Hurricane-Damaged Dwellings Demolished
By Tred R. Eyerly on
The Fifth Circuit affirmed the District Court's finding that a duty to defend was owed St. Bernard Parish after it was sued for condemning and demolishing housing destroyed by Hurricane Katrina. Lexington Ins. Co. v. St. Bernard Parish Gov't, 2013 U.S. App. LEXIS 24292 (5th Cir. Dec. 6, 2013).
St. Bernard's policies…
Faulty Workmanship Claims Not Covered Under Homeowner’s or Umbrella Policies
By Tred R. Eyerly on
The federal district court in Hawaii determined a subcontractor had no coverage under his homeowner's and umbrella policies for claims based on faulty workmanship. State Farm Fire & Cas. Co. v. Kaaihue, 2013 U.S. Dist. LEXIS 175395 (D. Haw. Dec. 13, 2013).
Allstate Insurance Personal Lines pursued a subrogation claim in state…
Innocent Insured Doctrine Preserves Malpractice Coverage for One Partner
By Tred R. Eyerly on
The Illinois Court of Appeal found that an innocent law partner was entitled to coverage under the firm's malpractice policy despite misrepresentations made by another partner. Illinois State Bar Association Mutual Ins. Co. v. Law Office of Tuzzolino and Terpinas, 2013 Ill. App. LEXIS 816 (Ill. Ct. App. Nov. 22, 2013).
Tuzzolino…