In a long running suit regarding thousands of asbestos bodily injury claims brought against Kaiser Cement and Gypsum Corporation, the California appellate court held that the excess carrier's indemnity obligation did not attach until all collectible primary policies were exhausted. Kaiser Cement and Gypsum Corp. v. Ins. Co. of the State of Pennsylvania
Third Circuit Follows Pennsylvania Law – Damage Caused by Faulty Workmanship Does Not Arise From An Occurrence
The Third Circuit followed Pennsylvania law in determining that damage caused by faulty workmanship did not arise from an occurrence. Zurich Am. Ins. Co. v. R. M. Shoemaker Co., 2013 U.S. App. LEXIS 6093 (3d Cir. March 27, 2013).
The County sued R. M. Shoemaker, alleging faulty construction of an addition to
No Coverage Under Efficient Proximate Cause Doctrine for Damage Caused by Leaking Pipe
In an unpublished opinion, the California Court of Appeal determined there was no coverage for damage caused by a leaking pipe, including mold. Brown v. Mid-Century Ins. Co., 2013 Cal App. Unpub. LEXIS 2389 (Cal. Ct. App. April 2, 2013).
In February 2009, the insureds noticed condensation on the windows of their
North Dakota Court Determines Inadvertent Faulty Workmanship is an “Occurrence”
Joining what it called the majority of jurisdictions, the North Dakota Supreme Court found that damage caused by faulty workmanship can be an "occurrence." K&L Homes, Inc. v. Am. Family Mutual Ins. Co., 2013 N.D. LEXIS 61 (N.D. April 5, 2013).
The insured, K&L, was a general contractor who was sued after completing
Hawaii Federal Court Addresses Ensuing Loss, Anti-Concurrent Causation Clause
Judge Kay of the Hawaii federal district court found coverage under an all-risk policy for damage caused by arsenic. Ass'n of Apt. Owners of Imperial Plaza v. Fireman's Fund Ins. Co., 2013 U.S. Dist. LEXIS 50904 (D. Haw. April 9, 2013).
Plaintiff had a fourth floor constructed on top of its existing
Hawaii Appellate Court Finds Duty to Defend Group Builders Case
On May 19, 2010, the Hawaii Intermediate Court of Appeals determined construction defect claims did not constitute an occurrence under a CGL policy. Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010) ("Group Builders I") [post here]. The appeal in Group Builders I
Hawaii Appellate Court Addresses Scope of AOAO’s Obligation to Provide Coverage to Owners
The Hawaii Intermediate Court of Appeals (ICA) determined that the AOAO's bylaws were ambiguous as to the extent of insurance coverage provided for its members. AOAO Queen Emma Gardens & Touchstone Props. v. Wai Hung Ma, 2013 Haw. App. LEXIS 192 (Haw. Ct. App. April 5, 2013).
The owners of a sixth
Group Builders Update – Ongoing Debate In Hawaii Over Coverage for Construction Defects
Our law firm's quarterly publication, Legal Alert, includes my article updating the evolving debate in Hawaii over coverage for construction defects. The latest edition of Legal Alert and my article are here.
Alabama Courts Look Beyond Arbitration Allegations To Determine Duty to Defend
The Eleventh Circuit considered whether Alabama law permitted the district court to look beyond the allegations of an arbitration complaint in deciding whether the insurer had a duty to defend. Am. Safety Indem. Co. v. T. H. Taylor, Inc., 2013 U.S. App. LEXIS 5072 (11th Cir. March 14, 2013).
The insured contractor
Who Is An Additional Insured?
The court grappled with whether defendants named in the underlying case were "additional insureds" under the policy. Colony Ins. Co. v. Price, 2013 U.S. Dist. LEXIS 38952 (N.D. Texas March 21, 2013).
Colony insured Tommy Sinclair under a CGL policy. Sinclair operated a nightclub. A patron was assaulted outside the club and