In a decision authored by Judge Leslie E. Koybayashi, the U.S. District Court for the District of Hawaii followed its prior decisions that construction defect claims were not covered because such claims do not arise from an occurrence. Nautilus Ins. Co. v. 3 Builders, Inc., 2013 U.S. Dist. LEXIS 88480 (D. Haw. June
Duty to Defend
Federal Court Finds Occurrence for Faulty Workmanship Under Virginia Law
By Tred R. Eyerly on
The Federal District Court in Virginia found that allegations of faulty workmanship could arise from an occurrence. Nautilus Ins. Co. v. Strongwell Corp., 2013 U.S. Dist. LEXIS 79163 (W. D. Va. June 4, 2013).
Strongwell supplied certain fiberglass reinforced plastic materials to a subcontractor of Black & Veatch for a construction…
Judge Posner Finds Exclusion Does Not Preclude Coverage for Injury to Construction Worker
By Tred R. Eyerly on
The Seventh Circuit found that an "Injury to Employees, Contractors, and Employees of Contractors" exclusion was not applicable to bar coverage for injuries to a construction worker. Atlantic Casualty Ins. Co. v. Paszko Masonry, Inc., 2013 U.S. App. LEXIS 11561 (7th Cir. June 7, 2013).
The underlying plaintiff was an employee of a waterproofing…
Duty to Defend Established Under Pollution Liability Policy
By Tred R. Eyerly on
The Fifth Circuit affirmed the district court's holding that the pollution liability insurer owed a duty to defend a generating plant sued by the EPA. Louisiana Generating L.L.C. v. Illinois Union Ins. Co., 2013 U.S. App. LEXIS 9837 (5th Cir. May 15, 2013).
Louisiana Generating ("LaGen") was sued by the EPA for…
Montana Supreme Court Finds Coverage for Student’s Suicide
By Tred R. Eyerly on
The Montana Supreme Court found coverage in a wrongful death case brought against an educational academy and others. Newman v. Scottsdale Ins. Co.,2013 Mont. LEXIS 146 (Mont. May 7, 2013).
The 16-year old girl was residing at the Spring Creek Lodge Academy in Montana at the time of her death. The girl's…
Greystone on Remand Denies Insurer’s Motion for Summary Judgment To Bar Coverage For Construction Defects
By Tred R. Eyerly on
A prior post here discussed the Tenth Circuit's decision in Greystone Constr., Inc. v. National Union Fire & Marine Ins. Co., 661 F. 3d 1272 (10th Cir. 2011). The court found a duty to defend construction defect claims where damage caused by the faulty workmanship was unintentional. The Tenth Circuit remanded for a…
Group Builders’ Presentation
By Tred R. Eyerly on
Today, I spoke with the HSBA Litigation section about construction defect coverage in Hawaii and the Group Builders' cases. Thank you to all who attended and participated in the discussion. Here are my power point slides from the presentation.
Third Circuit Follows Pennsylvania Law – Damage Caused by Faulty Workmanship Does Not Arise From An Occurrence
By Tred R. Eyerly on
The Third Circuit followed Pennsylvania law in determining that damage caused by faulty workmanship did not arise from an occurrence. Zurich Am. Ins. Co. v. R. M. Shoemaker Co., 2013 U.S. App. LEXIS 6093 (3d Cir. March 27, 2013).
The County sued R. M. Shoemaker, alleging faulty construction of an addition to…
Hawaii Appellate Court Finds Duty to Defend Group Builders Case
By Tred R. Eyerly on
On May 19, 2010, the Hawaii Intermediate Court of Appeals determined construction defect claims did not constitute an occurrence under a CGL policy. Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 231 P.3d 67 (Haw. Ct. App. 2010) ("Group Builders I") [post here]. The appeal in Group Builders I…
Alabama Courts Look Beyond Arbitration Allegations To Determine Duty to Defend
By Tred R. Eyerly on
The Eleventh Circuit considered whether Alabama law permitted the district court to look beyond the allegations of an arbitration complaint in deciding whether the insurer had a duty to defend. Am. Safety Indem. Co. v. T. H. Taylor, Inc., 2013 U.S. App. LEXIS 5072 (11th Cir. March 14, 2013).
The insured contractor…