A commentary on insurance coverage issues in Hawaii and beyond
The court denied the insurer's motion for summary judgment, holding that the insurer had a duty to defend the additional insured against claims for construction defects. Centex Homes v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 164472 (C.D. Cal. Nov. 24, 2014).
Centex contracted with Gateway Concrete, Inc. to install concrete foundations…
The homeowners' assigned claims against the general contractor's insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014).
The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a soil engineer.
The California Court of Appeal affirmed the trial court's holding that the insurer had no duty to defend claims arising out of the insureds' installation of defective steel framing in an apartment building. Regional Steel Corp. v. Liberty Surplus Ins. Corp., No. B245961(Cal. Ct. App. May 16, 2014) [decision here].
Regional…
The court determined that the supplier of cement for the construction of pools had coverage for alleged construction defects in the finished pools. Harleysville Worcester Ins. Co. v. Paramount Concrete, Inc., 2014 U.S. Dist. LEXIS 43889 (D. Conn. March 31, 2014).
R.I. Pools sued Paramount, a manufacturer and supplier of shotcrete, after…
Applying Minnesota law, the federal district court determined the supplier of contaminated dried milk had coverage. The Netherlands Ins. Co. v. Main Street Ingredients, LLC, 2014 WL 1012793 (8th Cir. March 18, 2014).
In 2007, Plainview Milk Products sold dried milk to Main Street Ingredients, LLC, who then sold the dried…
The Alabama Supreme Court withdrew is prior opinion and authored a new decision finding that construction defects are an "occurrence." Owners Ins. Co. v. Jim Carr Homebuilder, No. 1120764 (Ala. March 28, 2014) [decision here].
Jim Carr Homebuilder (JCH) contracted to build a home for the Johnsons. After completion of the construction…
The court rejected the insurer's arguments that the business risk exclusions barred coverage for a contractor. Gen. Cas. Co. of Wisconsin v. Five Star Bldg. Corp., 2013 U.S. Dist. LEXIS 134122 (D. Mass. Sept. 19, 2013).
Five Star was hired by the University of Massachusetts to upgrade the ventilation (HVAC) system…
The South Carolina Supreme Court determined there was no coverage for construction defect claims based upon the policy's exlcusions. Bennett & Bennett Constr., Inc. v. Auto Owners Ins. Co., 2013 S.C. LEXIS 170 (S.C. July 17, 2013).
The general contractor was hired by a homeowner to remove synthetic stucco cladding and replace…
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…
The U.S. District Court in Alabama certified a question to the Connecticut Supreme Court: Is damage to a project caused by faulty workmanship "property damage" resulting from an "occurrence"? With some qualification, the Connecticut Supreme Court answered in the affirmative. Capstone Building Corp. v. Am. Motorists Ins. Co., SC 18886 (Conn. June 11, 2013).…
