The New Jersey Supreme Court found that an anti-assignment provision could not be applied to bar a post-loss claim assignment. Givaudan Fragrances Corp. v. Aetna Cas. & Sur. Co., 2017 N.J. LEXIS 121 (N.J. Feb. 1, 2017). In reaching its decision, the court distinguished a decision from the Hawaii Supreme Court enforcing consent-to-assignment clauses and failing
Comprehensive General Liability
No Duty to Indemnify Insured’s Voluntary Payment
By Tred R. Eyerly on
The court agreed there was no coverage for payments when the insured was not legally obligated to make such payments. Elec. Motor & Constr. Co. v. Travelers Indemn. Co. of Am., 2017 U.S. Dist. LEXIS 11889 (E.D. Va. Jan. 27, 2017).
The insured, Electric Motor, contracted with the United States Navy to repair generators…
Subcontractor’s Faulty Workmanship Is Not an “Occurrence”
By Tred R. Eyerly on
The court found there was no duty to defend the subcontractor for alleged faulty workmanship in installing stone veneer at a condominium construction project. Quality Stone Veneer, Inc. v. Selective Ins.Co. of Am., 2017 U.S. Dist. LEXIS 9393 (E.D. Pa. Jan. 23, 2017).
Quality Stone Veneer (QSV) entered a subcontract with…
Whether Subcontractor’s Faulty Workmanship Is an Occurrence Creates Ambiguity
By Tred R. Eyerly on
The Ohio Court of Appeals determined that the CGL policy was ambiguous as to whether a subcontractor's faulty workmanship was an "occurrence." Ohio N. Univ. v. Charles Constr. Serv., 2017 Ohio App. LEXIS 258 (Ohio Ct. App. Jan. 23, 2017).
In 2007, Ohio Northern University (ONU) entered a contract with Charles Construction Services, Inc.
No Occurrence Where Contract Provides for Delays
By Tred R. Eyerly on
Applying Montana law, the federal district court found there was no coverage for a subcontractor who was sued by the contractor for breach of the subcontract. Phoenix Ins. Co. v. Ed Boland Constr., Inc., 2017 U.S. Dist. LEXIS 6654 (D. Mont. Jan 18, 2017).
Northbank was the general contractor on a project to repair a bridge…
Insurer Must Defend and Indemnify Construction Defect Claims Under Iowa Law
By Tred R. Eyerly on
Applying Iowa law, the federal district court found that the insurer had to defend and indemnify construction defect claims for damage to property caused by the insured's subcontractors. Van Der Weide v. Cincinnati Ins., 2017 U.S. Dist. LEXIS 4469 (N.D. Iowa Jan. 12, 2017).
Van Der Weide contracted with Bouma…
Additional Insured Not Entitled to Indemnity Coverage For Damage Caused by Named Insured
By Tred R. Eyerly on
The additional insured unsuccessfully sought to recover damages to its building caused by the named insured. Brit UW, Ltd. v. Tripar, Inc., 2017 U.S. Dist. LEXIS 2462 (N.D. Ill. Jan. 6, 2017).
Davis Russell Real Estate and Management LLC hired Tripar, Inc., a general contractor, to renovate a 12-unit apartment building. The entire roof was…
Insurer Cannot Escape Indemnity Obligations Through Cut-And-Paste Reservation of Rights
By Tred R. Eyerly on
The South Carolina Supreme Court found that the Special Referee correctly determined that the insurer failed to reserve the right to contest coverage of actual damages and punitive damages under the CGL policies. Harleysville Group Ins. v. Heritage Communities, Inc., 2017 S.C. LEXIS 8 (S.C. Jan. 11, 2017).
Two developments, the Riverwalk and Magnolia…
Duty to Defend Requires Payments Under Policy’s Supplemental Payments Provision
By Tred R. Eyerly on
The California Court of Appeal determined there was no duty to indemnify and the insured had to reimburse the insurer's contribution to a settlement. Nevertheless, there was a duty to defend, meaning the insured did not have to reimburse amounts it was entitled to under the supplemental payments provision. Navigators Specialty Ins. Co. v. …
“Damage to Your Product” Exclusion Bars Coverage
By Tred R. Eyerly on
The Arkansas Court of Appeals affirmed the denial of coverage for the insured based upon the exclusion for "damage to your product." S.E. Arnold & Co. v. Cincinnati Ins. Co., 2016 Ark. App. LEXIS 625 (Ark. Ct. App. Dec. 7, 2016).
The homeowners paid the insured, S.E. Arnold & Company, over $78,000 to supply…