The Second Circuit upheld the district court's grant of summary judgment finding that Scottsdale Insurance Company owed a defense to the insured and had to reimburse Greater New York Mutual Insurance Company for fronting the defense costs. Greater N.Y. Mut. Ins. Co. v. Burlington Ins. Co., 2024 U.S. App. LEXIS 10165 (2nd
Comprehensive General Liability
Ninth Circuit Affirms No Coverage in Dispute Over Salvage of Sunken Ship
By Tred R. Eyerly on
The Ninth Circuit affirmed the district court's decision that the insured was not covered for a dispute over the salvage of a sunken ship. Great American Ins. Co. v. May, 2024 US App. LEXIS 10137 (9th Cir. April 26, 2024).
MK Salvage Ventures LLC (MK) attempted to recover lost treasure…
Excess Policy Not Triggered Despite Dissolution of Primary Carrier
By Tred R. Eyerly on
The excess carrier did to have to contribute to the defense and indemnity of the insureds because the dissolution of one of the primary carriers meant full exhaustion had not been accomplished. Continental Cas. Co., et al. v. Argonaut Ins. Co., et al., 331 Ore. App. 26 (Or. Ct. App. 2024).
…
Insurer’s Motion for Summary Judgment on Faulty Workmanship Denied
By Tred R. Eyerly on
The court found that the insurer failed to meet its burden on summary judgment seeking a judgment that faulty workmanship precluded coverge. Auto-Owners Ins., Co. v. AAA Discount Homes, LLC, 2024 U.S. Dist. LEXIS 48463 (S.D. Ga. March 19, 2024).
Heather Way sued AAA Discount Homes, LLC and Delta Transport…
Insurers Dispute Sharing of Defense in Construction Defect Case
By Tred R. Eyerly on
The California Court of Appeal affirmed the trial court's decision that the defending insurer was not entitled to reimbursement of defense costs from another insurer based upon a subcontract and additional insured endorsement. Zurich Am. Ins. Co. v. Old Republic Gen. Ins. Corp., 2024 Cal. App. Unpub. LEXIS 1261 (Cal. Ct. App.
No Duty to Defend Construction Defect Claims under Kentucky Law
By Tred R. Eyerly on
The federal district court determined that the insurer was not obligated to defend construction defect claims under Kentucky law. Westfield Ins. Co. v. Kentuckiana Commercial Concrete, LLC, 2023 U.S. Dist. LEXIS 222674 (W.D. Ky. Dec. 14, 2023).
HRB, the owner of an apartment complex, filed an arbitration demand against the…
Finding an “Occurrence,” Appellate Court Rules Insurer Must Defend
By Tred R. Eyerly on
Reversing the trial court, the Wisconsin Court of Appeals found the insurer must defend a cross-claim against the insured owner of a building after an explosion occurred. LBC, LLC v Spectrum Brands, Inc., 2023 Wis. App. LEXIS 1251 (Wis. Ct. App, Nov. 30, 2023).
LBC leased commercial property to Spectrum.
Insurer’s Declaratory Relief Action on Duty to Indemnify Dismissed
By Tred R. Eyerly on
The court granted the insured's motion to dismiss the insurer's action for a declaratory judgment on the issue of indemnity when the underlying action was still ongoing. Utica Mut. Ins. Co. v. Crystal Curtain Wall Sys. Corp., NYLJ LEXIS 3255 (N.Y. Sup. Ct. Dec. 1, 2023).
Crystal was a subcontractor…
Hawaii Court of Appeals Finds Insured AOAO Not Liable for Securing Inadequate Insurance
By Tred R. Eyerly on
The Hawaii Intermediate Court of Appeals (ICA) affirmed the trial court's finding that the insured Association of Apartment Owners (AOAO) was not liable for securing a policy with inadequating coverage. AOAO Queen Emma Gardens, et al v. Wa, 2023 Haw. App. LEXIS 400 (Haw. Ct. App. Dec. 19, 2023).
In…
Illinois Supreme Court Finds Construction Defect Claim Triggers Initial Grant of Coverage
By Tred R. Eyerly on
The Illinois Supreme Court found that the underlying allegations addressing construction defects were sufficient to establish "property damage" caused by an "occurrence. "Acuity v. M/I Homes of Chicago, LLC, 2023 Ill. LEXIS 1019 (Ill. Nov. 30, 2023).
M/I Homes was the general contractor for a residential townhome development. The…