The federal district court, district of Hawaii, recently granted the insured’s motion for remand. Catholic Foreign Mission Society of Am., Inc. v. Arrowood Indem. Co., Civ. No. 14-00420, Order Granting Plaintiff’s Motion for Remand and Denying Defendants’ Motion to Dismiss or Transfer (D. Haw. Dec. 30, 2014) [Order here]. [Full disclosure
Duty to Indemnify
Insurer Has Duty to Defend Additional Insured in Construction Defect Case
By Tred R. Eyerly on
The court denied the insurer's motion for summary judgment, holding that the insurer had a duty to defend the additional insured against claims for construction defects. Centex Homes v. Lexington Ins. Co., 2014 U.S. Dist. LEXIS 164472 (C.D. Cal. Nov. 24, 2014).
Centex contracted with Gateway Concrete, Inc. to install concrete foundations…
No Indemnity Coverage Where Insured Suffers No Loss
By Tred R. Eyerly on
The insured subcontractor sought coverage under its Builder's Risk policy for loss despite already being paid under contract the amount sought under the policy. MKB Constr. v. Am Zurich Ins. Co., 2014 U.S. Dist. LEXIS 136096 (W.D. Wash. Sept. 24, 2014).
MKB contracted with the Lower Yukon School District (LYSD) to place…
Coverage Denied for Faulty Blasting and Improper Fill
By Tred R. Eyerly on
The court found coverage was properly denied based on the subcontractor's failure to follow contract specifications in blasting at the job site. Westfield Ins. Co. v. Carpenter Reclamation, Inc., 2014 U.S. Dist. LEXIS 130752 (S.D. W. Va. Sept. 18, 2014).
Carpenter was hired by the Board of Education (BOE) to perform preliminary…
Excess Carrier’s Declaratory Judgment Action Stayed While Underlying Case Still Pending
By Tred R. Eyerly on
The federal district court determined the excess carrier's declaratory judgment action to establish it had no coverage obligations should be stayed while the underlying case was still pending. Scottsdale Ins. Co. v. Ortiz & Assocs., 2014 U.S. Dist. LEXIS 64286 (D. Ore. May 9, 2014).
The subcontractor's employee was killed on the…
Employee Exclusion Bars Coverage for Wrongful Death of Subcontractor’s Employee
By Tred R. Eyerly on
The Fifth Circuit determined the deceased was a statutory employee of the general contractor under Florida law, thereby barring coverage for the general contractor. Stephens v. Mid-Continent Casualty Co., 2014 WL 1623737 (11th Cir. April 24, 2014).
The decedent fell from a ladder while working to install a modular home. Critically injured…
Insurer’s Denial of Coverage to Additional Insured Constitutes Bad Faith
By Tred R. Eyerly on
The insurer's unreasonable denial of a defense and indemnity to a lessor/additional insured was found to be in bad faith. Seaway Props. v. Fireman's Fund Ins. Co., 2014 U.S. Dist. LEXIS 55998 (W.D. Wash. April 22, 2014).
Seaway leased restaurant space to Ciao Bella Food, LLC. In January 10, 2010, the underlying…
Coverage Established for Property Damage Caused by Added Product
By Tred R. Eyerly on
Applying Minnesota law, the federal district court determined the supplier of contaminated dried milk had coverage. The Netherlands Ins. Co. v. Main Street Ingredients, LLC, 2014 WL 1012793 (8th Cir. March 18, 2014).
In 2007, Plainview Milk Products sold dried milk to Main Street Ingredients, LLC, who then sold the dried…
No Coverage for Breach of Contract Claims Against Contractor
By Tred R. Eyerly on
The U. S. District Court found there was no coverage for breach of contract claims against the contractor who walked off the job before completing the project. Pa. Nat'l Mut. Cas. Ins. Co. v. Snider, 2014 U.S. Dist. LEXIS 16920 (M.D. Ala. Feb. 11, 2014).
The homeowners hired Jeff Beale to build…
No Excess Indemnity Coverage When When Arcdiosese Has No Liability
By Tred R. Eyerly on
The Eighth Circuit determined the Archdiocese of St. Louis had no indemnity coverage after settling a suit in which it had no liability. Chicago Ins. Co. v. Archdiocese of St. Louis, 2014 U.S. App. LEXIS 1769 8th Cir. Jan. 29, 2014).
The Archdiocese was sued when the son of the underlying plaintiff…