Answering a question posed by the Ninth Circuit, the California Supreme Court found that a suit against a employer for negligent hiring, retention and supervision of a employee who intentionally injures a third party alleges an occurrence under a CGL policy. Liberty Surplus Co. Corp. v. Ledesma & Meyer Construction Co., 2018 Cal.
Comprehensive General Liability
No Coverage for Contractor’s Faulty Workmanship
By Tred R. Eyerly on
The Kentucky Supreme Court determined there was no coverage for the contractor's faulty workmanship in digging the existing basement of a building to make it deeper. Martin v. Acuity, 2018 Ky. LEXIS 188 (Ky. April 26, 2018).
Martin Elias/Properties, LLC (MEP) purchased an older home to renovate and resell for profit. MEP…
Insurer Must Defend Claims of Negligence and Private Nuisance
By Tred R. Eyerly on
The court determined there was a duty to defend negligence and private nuisance claims for dumping materials on the plaintiffs' property. Peters Heavy Construction, Inc. v. X-Pert One Tracking Corp., 2018 Wisc. App. LEXIS 358 (Wis. Ct. App. March 29, 2018).
Peters Heavy Construction sued X-Pert One for negligently depositing…
Under “Nature of The Event” Test, Intentional Shooting Not Covered
By Tred R. Eyerly on
The Supreme Court of Idaho found that the intentional shooting by a care-taker in the insureds' campground was not covered under the CGL policy. Farm Bureau Mut. Ins. Co. of Idaho v. Cook, 2018 Idaho LEXIS 71 (Idaho March 30, 2018).
The insureds allowed people to use a lake and…
Insurer Must Defend Contractor Against Claims of Faulty Workmanship
By Tred R. Eyerly on
The magistrate judge recommended that the insurer's motion for summary judgment seeking to determine there was no coverage for claims of faulty workmanship be denied. Greystone Multi-Family Builders v. Gemini Ins. Co., 2018 U.S. Dist. LEXIS 56770 (S.D. Tex. Feb. 26, 2018).
TPG (Post Oak) purchased an OCIP policy to…
Duty to Defend Sexual Abuse Allegations Limited by Endorsement
By Tred R. Eyerly on
The Fourth Circuit affirmed the district court's determination that the duty to defend was limited by the policy's $100,000 limit. Gemini Ins. Co. v. Earth Treks, Inc., 2018 U.S. App LEXIS 7622 (4th Cir. March 27, 2018).
Kelsey Fabian sued Earth Treks, Inc., alleging she suffered sexual abuse by two…
Coverage Denied for Condominium Managing Agent
By Tred R. Eyerly on
Determining there were no allegations of bodily injury or property damage in the underlying lawsuit, the court found there was no duty to defend or indemnify the condominium's managing agent. State Farm Fire & Cas. Co. v. Certified Mgmt., 2018 U.S.Dist. LEXIS 71124 (D. Haw. April 27, 2018).
Frederick Caven…
Coverage Case for Construction Defects Transferred to Hawaii
By Tred R. Eyerly on
The federal district court for the Northern District of California determined the proper forum for a coverage case was Hawaii, not California. Navigators Specialty Inc Co. v. Kapiolani Residential, LLC, 2018 U.S. Dist. LEXIS 47770 (N.D. Cal. March 22, 2018).
Albert C. Kobayashi, Inc. was the general contractor hired by…
Insurer Must Defend Claims of Faulty Workmanship That Damage Another’s Work
By Tred R. Eyerly on
The Nebraska Court of Appeals ruled that the insurer must defend claims of faulty workmanship causing property damage to something other than the insured's work product. Grinnell Mut. Reinsurance Co. v. Fisher, 2018 Neb. App. LEXIS 47 (Neb. Ct. App. March 13, 2018).
Fisher was a contractor who was hired…
Construction Management Fee Exclusion Bars Coverage
By Tred R. Eyerly on
The general contractor was not entitled to a defense based upon an exclusion for construction management fees. Houston Cas. Co. v. Cavan Corp .of NY, Inc., 2018 N.Y. App. Div. LEXIS 1138 (N.Y. App. Div. Feb. 20, 2018).
Cavan entered a Construction Management Agreement ("CMA") under which it would act…