The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S.
Pollution Exclusion Precludes Coverage For City’s Alleged Contamination of Drinking Water
In an entertaining decision authored by Judge Posner, the Seventh Circuit affirmed the district court's denial of coverage based upon the pollution exclusion. Scottsdale Indem. Co. v. Village of Crestwood, 2012 U.S. App. LEXIS 5069 (7th Cir. March 12, 2012).
In 1985, Crestwood's mayor and other Village officials learned from state environmental authorities
Allegations of Ensuing Loss Insufficient to Survive Motion to Dismiss
The court considered whether damages to the plaintiffs' home caused by Chinese drywall were covered under their homeowners policy. Dupuy v. USAA Cas. Ins. Co., 2012 U.S. Dist. LEXIS 31890 (M.D. La. March 9, 2012).
The plaintiffs' complaint alleged that the Chinese drywall "emits odorous gases that cause damage to air-conditioner and
No “Occurrence” Where Specific Breach of Construction Contract Claims
Coverage for construction defects was denied because the underlying claims were strictly contract-based and did not arise from an occurrence. Secura Ins. v. Horizon Plumbing, Inc., 2012 U.S. App. LEXIS 4477 (8th Cir. March 5, 2012).
Weitz Company, LLC was the general contractor on a project for MH Metropolitan, LLC. Horizon Plumbing
Hawaii Supreme Court Reaffirms Insurer’s Duty to Defend
Although it did not break new ground, the Hawaii Supreme Court reaffirmed its strong commitment to the insurer's duty to defend in Hart v. Ticor Title Ins. Co., 2012 Haw. LEXIS 83 (Haw. March 27, 2012).
The Harts owned two lots in Ewa Beach. They purchased a title insurance policy from TICOR
Coverage for Stolen Marijuana Plants Violates Public Policy
An interesting case challenging the insurer's denial of coverage for stolen marijuana plants has been working its way through the Federal District Court in Hawaii. See Tracy v. USAA Cas. Ins. Co., Civil No. 11-00487 LEK-KSC (Order Granting Defendant's Motion for Summary Judgment, issued March 16, 2012).
Plaintiff had twelve marijuana plants stolen from
Broker Not Liable for Failure to Reveal Insurer’s Insolvency After Policy Issued
Faced with an issue of first impression in California, the Court of Appeals held that a broker was not liable for failing to reveal the insurer's insolvency occurring after issuance of the policy. Pacific Rim Mechanical Contractors, Inc. v. Aon Risk Ins. Serv. West, Inc., 2012 Cal. App. LEXIS 232 (Cal. Ct. App. Feb. 28
Consequential Damages Available If Insurer Breaches Duty to Defend
The California Court of Appeals held that a carrier who breaches the duty to defend may be liable for consequential damages above policy limits. Carlson v. Century Surety Co., 2012 U.S. Dist. LEXIS 23119 (N.D. Cal. Feb. 23, 2012).
The underlying plaintiffs listed their home for sale with Prudential California Realty. Plaintiffs
Homeowner’s Policy Does Not Cover Injuries from Parked Car’s Carbon Monoxide
The Connecticut Supreme Court determined that the insured's homeowner's policy did not cover liability for injury to her house guests caused by a car left running overnight in the attached garage. See New London County Mut. Ins. Co. v. Nantes, 2012 Conn. LEXIS 62 (Conn. Feb. 21, 2012).
The insured had two
The Status of Construction Defect Coverage Litigation in Hawaii
Here is an article I authored in this month’s Hawaii Bar Journal entitled, “The Battle Over Coverage For Construction Defects.” The premise of the article is that while the Intermediate Court of Appeals held in Group Builders, Inc. v. Admiral Ins.Co.,123 Haw. 142, 213 P.3d 67 (Haw. Ct. App. 2010) that construction defects do