Having previously decided that construction defect claims did not arise from an occurrence and were consequently not covered under Hawaii law, the Hawaii Federal District Court refused to dismiss the insured's second amended counterclaim alleging various claims for relief. Ill. Nat'l Ins. Co. v. Nordic PCL Construc., Inc., 2013 U.S. Dist. LEXIS 108932
Hawaii Appellate Court Finds Duty to Defend Injury and Property Damage From Dam Breach
In an significant decision touching on a host of issues, the Hawaii Intermediate Court of Appeals (ICA) overturned the circuit court and found numerous insurers had a duty to defend its insured for bodily injury and property damage caused by the 2006 breach of the Kaloko Dam on Kauai. C. Brewer and Co., Ltd.
U.S. District Court for Hawaii Again Determines Construction Defect Claims Do Not Arise From An Occurrence
In a decision authored by Judge Leslie E. Koybayashi, the U.S. District Court for the District of Hawaii followed its prior decisions that construction defect claims were not covered because such claims do not arise from an occurrence. Nautilus Ins. Co. v. 3 Builders, Inc., 2013 U.S. Dist. LEXIS 88480 (D. Haw. June
Florida Court Determines Ambiguity Cannot be Resolved By Extrinsic Evidence
In addressing a certified question from the Eleventh Circuit, the Florida Supreme Court found that an insurer may not rely upon extrinsic evidence to salvage ambiguities in a policy. Wash. Nat'l Ins. Corp. v. Ruderman, 2013 Fla. LEXIS 1388 (Fla. July 3, 2013).
The case arose as a class suit against Washington
Uninsured Party Has No Bad Faith Claim Against Insurer
The West Virginia Supreme Court of Appeals affirmed the dismissal of plaintiffs' bad faith claim because they were not insureds under the policy. Triad Insulation, Inc. v. Nationwide Mut. Fire Ins. Co., 2013 W.Va. LEXIS 768 (W. Va. June 24, 2013).
Triad Insulation was the sole named insured under a commercial
Mediation and Late Appraisal Request Does Not Toll Statute of Limitations
The court agreed with State Farm that the insureds' request for an appraisal made after the statute of limitations had run was too late. Stolz v. State Farm Fire and Cas. Co., 2013 U.S. Dist. LEXIS 86834 (S.D. Miss. June 20, 2013).
The insureds' property sustained damage from Hurricane Katrina. State Farm
Ninth Circuit Rejects Creative Expansion of Montrose
The insured's effort to expand the California Supreme Court's decision in Montrose did not survive the Ninth Circuit's review. City of San Buenaventura v. The Insurance Company of the State of Pennsylvania, 2013 U.S. App. LEXIS13084 (9th Cir. June 26, 2013).
The City of San Buenaventura contracted with a developer to build
Georgia Supreme Court Determines Damage to “Other Property” Not Necessary for Finding Occurrence
The Georgia Supreme Court has determined that an "occurrence" may arise under a CGL policy even if "other property" is not damaged. Taylor Morrison Servs. v. HDI-Gerling Am. Ins. Co., 2013 Ga. LEXIS 618 (Ga. July 12, 2013).
Taylor Morrison, the insured, was a homebuilder. It was sued in a class action
Reversing Itself, West Virginia Supreme Court Holds Construction Defects Are Covered
The West VirginiaSupreme Court previously held that construction defects were not covered undera CGL policy. The Court, however, reversed itself in Cherrington v. Erie Ins. Prop. & Cas. Co., 2013 W.Va. LEXIS 724 (W.V.June 18, 2013).
The underlying complaint against the general contractor allegedvarious defects in the plaintiff’s recently constructed house
Exclusions Preclude Loss Caused by Heavy Rains
Exclusions in the plaintiffs' policy barred coverage for loss caused by heavy rain storms. Emsbo v. Fireman's Fund Ins. Co., 2013 U.S. Dist. LEXIS 86072 (D. R.I. June 19, 2013).
Torrential rain and historic flooding was experienced in Rhode Island in March 2010. The heavy rains over-flowed plaintiffs' rain gutters and flooded