A commentary on insurance coverage issues in Hawaii and beyond
The Fifth Circuit Court of Appeals considered whether coverage existed for a defectively built tennis court in light of a contractual liability exclusion. Ewing Construction Company, Inc. v. Amerisure Ins. Co., 2012 U.S. App. LEXIS 12154 (5th Cir. June 15, 2012).
Ewing Construction Company entered a contract with the School District to construct…
The federal district court determined that under Alabama law, there was no coverage for breach of contract claims arising from alleged construction defects. Owners Ins. Co. v. Shep Jones Constr., Inc., 2012 U.S. Dist. LEXIS 62085 (N.D. Ala. May 3, 2012).
The insured entered a contract with the homeowner to remodel her…
The insured's duty to cooperate after the insurer initially denies the claim but later agrees to defend under reservations was the issue in Travelers Prop. Cas. Co. of Am. v. Fid. & Guar. Ins. Co., 2012 U.S. Dist. LEXIS 65834 (N.D. Cal. May 10, 2012).
Centex Homes developed several residential communities, subcontracting…
In a battle between two insurers, one insurer's reliance upon its policy's escape provision did not excuse its failure to contribute to the insured's defense and an eventual settlement. See W. World Ins. Co. v. Markel Am Ins. Co., 2012 U.S. App. LEXIS 9335.
The underlying plaintiff was injured when he fell down an elevator…
The insurer's duty to defend a developer sued by purchasers of homes for damages for diminution in value of homes was at issue in Mid-Continent Cas. Co. v. Academy Dev., Inc., 2012 WL 1382459 (5th Cir. April 20, 2012).
In the underlying action, plaintiffs alleged the developer knew when it sold the…
In an entertaining decision authored by Judge Posner, the Seventh Circuit affirmed the district court's denial of coverage based upon the pollution exclusion. Scottsdale Indem. Co. v. Village of Crestwood, 2012 U.S. App. LEXIS 5069 (7th Cir. March 12, 2012).
In 1985, Crestwood's mayor and other Village officials learned from state environmental authorities…
Although it did not break new ground, the Hawaii Supreme Court reaffirmed its strong commitment to the insurer's duty to defend in Hart v. Ticor Title Ins. Co., 2012 Haw. LEXIS 83 (Haw. March 27, 2012).
The Harts owned two lots in Ewa Beach. They purchased a title insurance policy from TICOR…
The California Court of Appeals held that a carrier who breaches the duty to defend may be liable for consequential damages above policy limits. Carlson v. Century Surety Co., 2012 U.S. Dist. LEXIS 23119 (N.D. Cal. Feb. 23, 2012).
The underlying plaintiffs listed their home for sale with Prudential California Realty. Plaintiffs…
Although it was an additional insured under the tenant's commercial general liability policy, the landlord was not entitled to a defense for injury arising out of property other than the leased property. See VBH Luxury, Inc. v. 940 Madison Assoc. LLC, 2012 N.Y. LEXIS 217 (N.Y. Feb. 14, 2012).
The landlord was an additional insured…
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.
