Gordon Ito, Commissioner of the Hawaii Insurance Division, will be the guest speaker at the Hawaii State Bar Association's Insurance Coverage Litigation Section's meeting on Friday, October 7, 2011.The meeting will be from 12:00 p.m. to 1:00 p.m. at the offices of Cades Schutte, 1000 Bishop Street, 10th Floor. Please feel free to join us.
Policy’s Anti-Assignment Provision Enforced
After suffering hurricane damage and having repairs made, the insured sought to assign rights under its policy to the contractor performing the remediation work. The anti-assignment provision, however, prevented the contractor's recovery under the policy. Paramount Disaster Recovery, Inc. v. Axis Surplus Ins. Co., 2011 U.S. Dist. LEXIS 98272 (S.D. Texas. Aug. 31
Exclusion Precludes Argument under Efficient Proximate Cause Doctrine
The court determined there was no coverage for water intrusion based upon a comprehensive Exterior Insulation and Finish Systems (EIFS) Exclusion. Nat'l Am. Ins. Co. v. Gerlicher Co., LLC, 2011 Okla. Civ. App. LEXIS 79 (Okla. Ct. App. Aug. 29, 2011).
Gerlicher purchased a commercial building constructed by general contractor Pinion Construction
Faulty Workmanship Causing Damage to Other Property Covered as Construction Defect
In yet another recent construction defect case, the Illinois Court of Appeal found for coverage. See Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Ct. LEXIS 872 (Ill. Ct. App. Aug. 15, 2011).
Weather-Tite, Inc. hired Larson as a subcontractor to apply sealant to windows installed by Weather-Tite in a condominium
First Party Policy’s Pollution Exclusion Given Narrow Interpretation
The California Court of Appeals considered the reach of a pollution exclusion in a first party property policy. See The Villa Los Alamos Homeowners Assoc. v. State Farm Gen. Ins. Co., 2011 Cal. App. LEXIS 1079 (Cal. Ct. App. Aug. 17, 2011).
A prior case from the California Supreme Court was instructive. In MacKinnon
Assignee of Policy Rights Entitled To Defense
The insurer argued it had no duty to defend the assignee of a policy because it was not a named insured. While the trial court agreed, the Appellate Court of Illinois reversed. Illinois Tool Works, Inc. v. Commerce and Indus. Ins. Co., 2011 Ill. App. LEXIS 881 (Ill. Ct. App. Aug. 16, 2011).
South Carolina Court Reverses Itself on Construction Defect Issue
In a January decision, the South Carolina Supreme Court found no coverage under a CGL policy for construction defects. On rehearing and after considering numerous amici briefs, the court withdrew its initial opinion and determined there was coverage for progressive property damage caused by faulty workmanship. Crossmann Communities of North Carolina, Inc. v. Harleysville
Faulty Workmanship, Standing Alone, is Not an Occurrence Under Kentucky Law
The federal district court was bound by a prior decision from the Kentucky Supreme Court in deciding construction defects did not qualify as an "occurrence" under a CGL policy. See State Auto Ins. Co. v. Thomas Landscaping & Construction, Inc., 2011 U.S. Dist. LEXIS 88176 (E.D. Ohio Aug. 9, 2011).
After Thomas
No Coverage Under Ensuing Loss Provision
The cost of removing and replacing cracked flanges to prevent future leakage was not covered as an ensuing loss under a builder's risk policy in RK Mechanical, Inc. v. Travelers Prop. Casualty Co. of Am., 2011 U.S. Dist. LEXIS 83958 (D. Colo. Aug. 1, 2011).
The insured, RK Mechanical Inc., was a
No Coverage For Construction Defects When Complaint Alleges Contractual Damages
The underlying plaintiff's allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage. See Nat'l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).
Slocum Construction LLC sold a home it