A commentary on insurance coverage issues in Hawaii and beyond
The Fourth Circuit affirmed the district court's determination that there was no duty to indemnify after the insured settled without consent of the insurer. Perini/Tompkins Joint Venture v. ACE American Ins. Co., 2013 U.S. App. LEXIS 24865 (4th Cir. Dec. 16, 2013).
The insured, a joint venture, was hired as manager for…
The Wisconsin Court of Appeals found that a defense was owed to a farmer for pollution allegedly caused by use of manure. Wilson Mut. Ins. Co. v. Falk, 2013 Wis. App. LEXIS 1931(Wis. Ct. App. Dec. 11, 2013).
The insured used manure from cows as fertilizer for his fields. The state Department…
The trial court's holding that there was no occurrence based on claims from faulty workmanship was reversed by the appellate division of the Pennsylvania Superior Court. The underlying claims were based on product liability tort claims, not faulty workmanship. Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh, PA., 2013 Pa. Super.
Following Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013).
Walmart hired a contractor to build a new store. The contractor hired Kay and Kay…
The federal district court for Northern California granted the insurer's motion for reimbursement of funds advanced to the insured under a reservation of rights. Great Am. Ins. Co. v. Chang, 2013 U.S. Dist. LEXIS 159197 (N.D. Cal. Nov. 6, 2013).
The Changs operated a dry cleaner business on their property from 1977…
The California Court of Appeal ruled that an insurer does not have a duty to defend a lawsuit seeking injunctive relief and no compensatory damages. San Miguel Cmty. Assn. v. State Farm Gen. Ins. Co., 2013 Cal. App. LEXIS 836 (Cal. Ct. App. Oct. 1, 2013).
San Miguel was a nonprofit residential…
The New Jersey Supreme Court considered the appropriate allocation for costs of the cleanup of contaminated property when one of the two insurers became insolvent. Farmers Mut. Fire Ins. Co v. N.J. Prop. Liab. Ins. Guar. Ass'n, 2013 N.J. LEXIS 902 (N.J. Sept. 24, 2013).
Newark Insurance Company issued a homeowner's policy…
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…
Judge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic …
The Alabama Supreme Court followed prior precedent and found that the contractor's faulty workmanship causing damage to his own product did not arise from an occurrence. Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013).
The plaintiffs contracted with Carr to construct a new home.
