The Hawaii federal district court confirmed its prior holdings that there is no duty to defend or indemnify for property damage caused by faulty workmanship. State Farm Fire & Cas Co. v. GP West, Inc., 2016 U.S. Dist. LEXIS 74240 (D. Haw. Jun 7, 2016). (Full disclosure – our office represents GP West in
July 2016
Bad Faith Attorneys’ Fees Decided After Verdict May Be Included in Punitive Damage Calculation
By Tred R. Eyerly on
The California Supreme Court considered whether the calculation for punitive damages may include attorneys' fees expended to obtain benefits determined after the jury has rendered its punitive damages verdict. Nickerson v. Stonebridge Life Ins. Co., 2016 Cal. LEXIS 3757 (Cal. June 9, 2016).
The insured broke his leg on February 11, 2008, when he…
Iowa Court Holds Defective Work Performed by Insured’s Subcontractor Constitutes an “Occurrence”
By Tred R. Eyerly on
The Iowa Supreme Court held that property damage caused by a subcontractor's defective work was an "occurrence." Nat'l Sur. Corp. v. Westlake Invs., LLC, 880 N.W. 2d 724 (Iowa 2016).
In 2002, the insureds, the developers and general contractor, began construction on an apartment complex. While the complex was still…
Policy Does Not Commit Insurer to Provide Supersedeas Bond
By Tred R. Eyerly on
The insured's claim that the insurer improperly refused to provide a supersedeas bond was rejected by the federal district court. James River Ins. Co. v. Interlachen Property Owners Ass'n v. Kuepers Constr., 2016 U.S. Dist. LEXIS 71825 (D. Minn. June 1, 2016).
Kuepers Construction, Inc. constructed a townhome project on property owned by the Association.
Case Remanded After Insurer Fails to Carry Burden on Amount in Controversy
By Tred R. Eyerly on
The insured successfully remanded the case back to state court when the insurer could not substantiate that the amount in controversy would exceed $75,000. Puente v. State Farm Lloyds, 2016 U.S. Dist. LEXIS 58103 (S.D. Texas March 28, 2016).
The insured's property was damaged in a wind and hail storm.
Hawaii Supreme Court Finds Subcontractor Has No Duty to Defend Under Indemnity Provision
By Tred R. Eyerly on
The Hawaii Supreme Court vacated the decision of the Intermediate Court of Appeals [see prior post here] and determined that a subcontractor did not have a duty to defend the developer upon tender under an indemnify provision in the parties' contract. Arthur v. State of Hawaii, 2016 Haw. LEXIS 155 (June 27, 2016). …
Subsurface Water Exclusion Found Unambiguous
By Tred R. Eyerly on
The Eighth Circuit rejected the policyholder's appeal on the ambiguity of a subsurface water exclusion. Bull v. Nationwide Mut. Fire Ins. Co., 2016 U.S. App. LEXIS 9703 (8th Cir. May 27, 2016).
Michael Bull, the insured, experienced a leak from a buried pipe beneath his garage slab. The leak caused…