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
Comprehensive General Liability
Alabama Supreme Court Finds No Coverage for Construction Defect to Contractor’s own Product
By Tred R. Eyerly on
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.
Additional Insured Secures Defense Under Subcontractor’s Policy
By Tred R. Eyerly on
The court determined there were sufficient allegations in the underlying complaint and third party complaints to raise a duty to defend for the additional insured. Ill. Emcasco Ins. Co. v. Waukegan Steel Sales, 2013 Ill. App. LEXIS 624 (Ill. Ct. App. Sept. 13, 2013).
Waukegan was named as an additional insured under subcontractor…
South Carolina Supreme Court Finds that Consequential Damage Arise From “Occurrence”
By Tred R. Eyerly on
The South Carolina Supreme Court held that continuing damage that was part of a continuum of property damage constituted an "occurrence." Auto-Owners Ins. Co. v. Rhodes, 2013 S.C. LEXIS 248 (Sept. 25, 2013).
Rhodes hired Eadon to design, fabricate, and erect three outdoor advertising signs on Rhodes' property bordering an interstate highway.
Hawaii Construction Defect Coverage Update
By Tred R. Eyerly on
Claims against Insurance Agent Survive on Appeal
By Tred R. Eyerly on
The Sixth Circuit reversed the district court's denial of the insured's claims against an agent for failure to procure proper coverage. Cleveland Indians Baseball Co., L.P. v. New Hampshire Ins. Co. Group, 2013 U.S. App. LEXIS 17629 (6th Cir. Aug. 23, 2013).
The Cleveland Indians contracted with National Pastime Sports to put on "Kids…
Coverage Determined for Acquired Business Property In Storage
By Tred R. Eyerly on
The Eighth Circuit determined that business property in storage before the insured could transport the property was covered under the "Newly Acquired or Constructed Property" extension of the commercial property policy. Amera-Seiki Corp. v. The Cincinnati Ins. Co., 2013 U.S. App. LEXIS 14893 (8th Cir. July 23, 2013).
The insured imported computerized…
Ninth Circuit Affirms Duty to Defend CERCLA Section 104 (e) Letter
By Tred R. Eyerly on
The Ninth Circuit held there is a duty to defend not only a PRP letter issued by the EPA, but also a section 104 (e) letter. Anderson Brothers, Inc. v. St. Paul Fire and Marine Ins. Co., 2013 U.S. App. LEXIS 18156 (9th Cir. Aug. 30, 2013).
The insured received two letters…
Contractor Covered for Voluntary Remediation Efforts in Completed Homes
By Tred R. Eyerly on
The Texas Supreme Court held that a home builder was covered for the voluntary removal and replacement of a defective insulation product it had installed in hundreds of homes. Lennar Corp. v. Market Am. Ins. Co., 2013 Tex. LEXIS 597 (Tex. Sup. Ct. Aug. 23, 2013).
Lennar built homes using an exterior…
Exclusions Preclude Coverage for Construction Defects
By Tred R. Eyerly on
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…