After its prior decision holding there was no coverage for faulty workmanship was remanded by the Michigan Supreme Court, the Court of Appeals remanded to the trial court. Skanska United States Bldg. v. M.A.P. Mech. Contrs., 2021 Mich. App. LEXIS 7336 (Mich. Ct. App. Dec. 28, 2021). The post summarizing the
Construction Defects
Eleventh Circuit Finds No Coverage for Faulty Workmanship Claims
The Eleventh Circuit affirmed the district court's grant of summary judgment to the insurer on the general contractor's claims for damages due to faulty workmanship. Tricon Dev. of Brevard v. Nautilus Ins. Co., 2021 U.S. App. LEXIS 27317 (11th Cir. Sept .10, 2021).
Tricon was the general contractor for a…
Contractor Entitled to Continued Defense Against Allegations of Faulty Construction
The U.S. District Court found that the contractor was entitled to a defense in the underlying state court action. Pa. Nat'l Mut. Cas. Ins. Co. v. Zonko Builders, 2021 U.S. Dist. LEXIS 168855 (D. Del. Sept. 7, 2021).
Zonko was the general contractor for building the Salt Meadows Townhomes Condominium.
Objection to Insurer’s Protective Order Regarding Dismissed Claim Overruled
The court overruled the objection to the magistrate issuance of a protective order to prevent a deposition related to a dismissed claim. Pulte Home Corp. v. TIG Ins. Co., 2021 U.S. Dist. LEXIS 159014 (S.D. Calif. Aug 23, 2021).
Plaintiff was the general contractor for two real estate development projects.
Wisconsin Court of Appeals Re-affirms American Girl To Find Coverage for Damage Caused by Subcontractors
The trial court's finding of no occurrence and no property damage due to faulty workmanship was reversed by the appellate court. No. 5 Walworth v. Engerman Contracting, Inc., 2021 Wis. App. LEXIS 401 (Wis. Ct. App, July 30, 2021).
Engerman was the general contractor on a construction project at…
Insurer Motion to Intervene in Underlying Case Denied
The Colorado Supreme Court determined that the insurer defending under a reservation of rights could not intervene in the underlying case after the insured assigned its rights to any bad faith claim against the insurer. Auto-Owners Ins. Co. v. Bolt Factory Lofts Owners Ass'n, Inc., 2021 Colo. LEXIS 365 (Colo. May 24…
Exclusion for Construction of Condominiums Includes Faulty Construction of Retaining Wall
The exclusion for suits arising out of construction of condominiums encompassed the underlying claim for faulty construction of a retaining wall. HT Serv., LLC v. Western Heritage Ins. Co., 2021 U.S. App. LEXIS 16259 (10th Cir. June 1, 2021).
HT Services was a land developer. HT Services designed and constructed…
Contractor Prevails on Summary Judgment To Establish Coverage under Subcontractor’s Policy
When sued for construction defects caused by the subcontractor, the general contractor was granted summary judgment on the issue of coverage under the subcontractor's policy. Meritage Homes of Ga. v. Grange Ins. Co., 2021 U.S. Dist. LEXIS 84591 (N.D. Ga. March 23, 2021).
Meritage built a home for the…
Illinois Court Determines Duty to Defend Construction Defect Claims
Given the underlying allegations of damage to personal property, the court determined the insurer had a duty to defend. Certain Underwriters at Lloyd's London v. Metropolitan Builders, Inc., 2019 Ill. App. LEXIS 979 (Ill. Ct. App. Dec. 18, 2019).
Metropolitan was hired as the general contractor for construction, renovation and…
Business Risk Exclusions Bar Faulty Workmanship Claim
The manufacturer of roofing and waterproofing systems was unsuccessful in securing coverage for alleged faulty workmanship due to the "your work" and "your product" exclusions. Siplast, Inc. v. Emplrs Mut. Cas. Co., 2020 U.S. Dist. LEXIS 176539 (N.D. Texas Sept. 25, 2020).
Siplast was sued in New York by…