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.
Bad Faith Claim For Independent Contractor’s Reduced Loss Assessment Survives Motion to Dismiss
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
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
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
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
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
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
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
Defense Owed for Product Liability Claims That Do Not Amount to Faulty Workmanship
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.
Sixth Circuit Finds No Coverage For Faulty Workmanship Under Kentucky Law
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