The homeowners sued their contractor, alleging the contractor had defectively constructed and failed to complete their home. State Farm Fire and Casualty Co. v. Vogelgesang, 2011 U.S. Dist. LEXIS 72618 (D. Haw. July 6, 2011). The homeowners' complaint pled, among other things, damage caused by breach of contract and negligence. State Farm agreed to
Duty to Defend
After Breaching its Duty to Defend, Insurer Must Indemnify
By Tred R. Eyerly on
In a brief decision analyzing Oregon law, the Ninth Circuit determined that once an insurer breaches its duty to defend, it must indemnify. See Desrosiers v. Hudson Speciality Ins. Co., 2011 U.S. App. LEXIS 12591 (9th CIr. June 21, 2011).
The victim secured a judgment against the insured after he was beaten…
Illinois Court Determines Insurer Must Defend Property Damage Caused by Faulty Workmanship
By Tred R. Eyerly on
The Illinois Court of Appeals determined the insurer must defend allegations of property damage arising from faulty workmanship. Milwaukee Mut. Ins. Co. v. J.P. Larsen, Inc., 2011 Ill. App. Unpub. LEXIS 1443 (Ill. Ct. App. June, 20, 2011).
Larsen was a subcontractor for Weather-Tite in a condominium building. Weather-Tite installed windows on the…
Although Property Damage Arises From An Occurrence, Coverage Barred By Business Risk Exclusions
By Tred R. Eyerly on
The homeowners hired the insured to raise the structure of their home twenty-four inches above the flood zone. Lafayette Ins. Co. v. Peerboom, 2011 U.S. Dist. LEXIS 58985 (S.D. Miss. June 2, 2011). When the insured's crew returned from lunch one day, they found the house had fallen from hydraulic jacks being used…
Insurer Must Defend Claims Arising From Alleged Contamination of Rice
By Tred R. Eyerly on
The insurer's duty to defend the insured against claims arising from contamination of the commercial rice supply by mixing it with genetically modified ("GM") rice was at stake in Riceland Foods, Inc. v. Liberty Mut. Ins. Co., 2011 U.S. Dist. LEXIS 61381 (E.D. Ark. June 8, 2011).
Riceland processed and marketed rice and other…
Insurer Must Defend Claims Against Supplier of Chinese Drywall
By Tred R. Eyerly on
The insurer sought to avoid coverage for claims against its insured, a supplier of Chinese drywall. The court ruled, however that the exclusions relied upon by the insurer did not bar coverage. See Auto-Owners Ins. Co. v. Am. Building Materials, Inc., 2011 U.S. Dist. LEXIS 52837 (M.D. Fla. May 17, 2011).
The…
Insured’s Claim Against Agent Survives Statutue of Limitations Challenge
By Tred R. Eyerly on
After being sued for failure to secure a policy, the insurance agents sought dismissal of the insured's suit on statute of limitations ground. Kelly v. Lodwick, 2011 Fla. App. LEXIS 4810 (Fla. Ct. App. April 6, 2011).
A private school was notified its policy would not be renewed after it lapsed on…
General Contractor Covered As Additional Insured in Personal Injury Suit
By Tred R. Eyerly on
The extent of coverage for a General Contractor as an additional insured was the issue in Kummer Enter., Inc. v. Valley Forge Ins. Co., 2011 U.S.Dist. LEXIS 17726 (W.D. Mich. Feb. 23, 2011).
The General Contractor contracted to build an addition to a medical center. One subcontractor, Total Foundations LLC., was required to…
Additional Insured Has No Coverage for Operations Completed
By Tred R. Eyerly on
Whether coverage existed for property damage occurring after the subcontract finished its work on the project was the issue presented in United Fire & Cas. Co. v. Boulder Plaza Residential, LLC, 2011 U.S. App. LEXIS 1694 (Jan. 27, 2011).
Boulder Plaza Residential, LLC ("BPR"), a real estate developer, and McCrery & Roberts Construction…
No Coverage Where Contract’s Indemnity Provision Never Triggered
By Tred R. Eyerly on
Whether the insurer was obligated to indemnify its insured for potential liability under a contractual indemnity provision was at issue in Farmers Ins. Exchange v. RNK, Inc., 2011 U.S. App. LEXIS 1255 (1st Cir. Jan. 21, 2011).
RNK, a telephone company, and Ripple, a company providing conference services including chat lines, entered…