The issue before the 11th Circuit was whether, under Florida law, a general contractor had coverage for a property damage claim limited to the defective work performed by a subcontractor, and not affecting any other portion of the project. The court found no coverage in Amerisure Mut. Ins. Co. v. Auchter Co., 2012 U.S.
Construction Defects
No “Occurrence” Where Specific Breach of Construction Contract Claims
By Tred R. Eyerly on
Coverage for construction defects was denied because the underlying claims were strictly contract-based and did not arise from an occurrence. Secura Ins. v. Horizon Plumbing, Inc., 2012 U.S. App. LEXIS 4477 (8th Cir. March 5, 2012).
Weitz Company, LLC was the general contractor on a project for MH Metropolitan, LLC. Horizon Plumbing…
Broker Not Liable for Failure to Reveal Insurer’s Insolvency After Policy Issued
By Tred R. Eyerly on
Faced with an issue of first impression in California, the Court of Appeals held that a broker was not liable for failing to reveal the insurer's insolvency occurring after issuance of the policy. Pacific Rim Mechanical Contractors, Inc. v. Aon Risk Ins. Serv. West, Inc., 2012 Cal. App. LEXIS 232 (Cal. Ct. App. Feb. 28…
The Status of Construction Defect Coverage Litigation in Hawaii
By Tred R. Eyerly on
Here is an article I authored in this month’s Hawaii Bar Journal entitled, “The Battle Over Coverage For Construction Defects.” The premise of the article is that while the Intermediate Court of Appeals held in Group Builders, Inc. v. Admiral Ins.Co.,123 Haw. 142, 213 P.3d 67 (Haw. Ct. App. 2010) that construction defects do…
Ohio Court Finds No Coverage for Construction Defect Claims
By Tred R. Eyerly on
Charles and Valerie Myers hired Perry Miller to build their home. Myers v. United Ohio Ins. Co., 2012 Ohio App. LEXIS 287 (Ohio Ct. App. Jan. 26, 2012). After completion of the home, Miller was again hired to construct an addition which included a full basement, staircases, bathroom, bedroom, hallway and garage.
After the…
Insurer Must Cover Construction Defects Claims Under Actual Injury Rule
By Tred R. Eyerly on
The Texas Court of Appeals held that the insured need not prove the exact dates physical damage occurred in order to trigger defense and indemnity coverage. Vines-Herrin Custom Homes, LLC v. Great Am. Lloyds Ins. Co., 2011 Tex. App. LEXIS 10027 (Tex. Ct. App. Dec. 21, 2011).
In 1999, the insured built a home.
Insurer Not Entitled to Summary Judgment on Construction Defect Claims
By Tred R. Eyerly on
The insurer unsuccessfully moved for summary judgment, contending it had no obligation to defend two related underlying construction defect cases. Amerisure Ins. Co. v. R.L.Lantana Boatyard, Ltd., 2012 U.S. Dist. LEXIS 2466 (S.D. Fla. Jan. 9, 2012).
An engineering report noted design construction defects and deficiencies in visible, physical improvements at The Moorings at Lantana Condominium.
Hawaii Federal District Court Stays Coverage Action
By Tred R. Eyerly on
The insured moved to dismiss the insurers' action for declaratory judgment because a parallel action was pending in Missouri state court. Axis Surplus Ins. Co. v. McCarthy/Kiewit, 2012 U.S. Dist. LEXIS 3612 (D. Haw. Jan. 12, 2012).
Kaiser Foundation Health Plan, Inc. hired the insured, a joint venture, to act as general…
Granting Stay, Federal Court Reviews Construction Defect Coverage in Hawaii
By Tred R. Eyerly on
The federal district court ultimately stayed a construction defect case, but offered comments on the current status of coverage disputes for such defects in Hawaii. See National Union Fire Ins. Co. of Pittsburgh, Pa. v. Simpson Mfg. Co., 2011 U.S. Dist. LEXIS 128481(D. Haw. Nov. 7, 2011).
National Union filed a complaint for…
Tenth Circuit Finds Insurer Must Defend Unintentional Faulty Workmanship
By Tred R. Eyerly on
Applying Colorado law, the Tenth Circuit found a duty to defend construction defect claims where the faulty workmanship was unintentional. Greystone Const. Inc. v. National Fire & Marine Ins. Co., 661 F.3d 1272 (10th Cir. 2011). A prior post [here] discussed the Tenth Circuit's certified question to the Colorado Supreme Court…