The trial court's holding that there was no occurrence based on claims from faulty workmanship was reversed by the appellate division of the Pennsylvania Superior Court. The underlying claims were based on product liability tort claims, not faulty workmanship. Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh, PA., 2013 Pa. Super.
Duty to Indemnify
Sixth Circuit Finds No Coverage For Faulty Workmanship Under Kentucky Law
By Tred R. Eyerly on
Following Kentucky law, the Sixth Circuit determined there was no coverage for a construction defect claim. Liberty Mut. Fire Ins. Co. v. Kay & Kay Contracting, LLC, 2013 U.S. App. LEXIS 23587 (6th Cir. Nov. 19, 2013).
Walmart hired a contractor to build a new store. The contractor hired Kay and Kay…
After Deciding No Duty to Defend Additional Insured, Court Finds Duty to Indemnify
By Tred R. Eyerly on
The Delaware Superior Court found the insurer had a duty to indemnify the additional insured for settlement proceeds in a wrongful death suit. Premcor Ref. Group v. Matrix Serv. Indus. Contrs., 2013 Del. Super. LEXIS 517 (Del. Super. Ct. Nov. 18, 2013).
Premcor hired Pro-Tech to coordinate work at an oil refinery.
Following Buss, Court Grants Insurer’s Request for Reimbursement of Defense Costs
By Tred R. Eyerly on
The federal district court for Northern California granted the insurer's motion for reimbursement of funds advanced to the insured under a reservation of rights. Great Am. Ins. Co. v. Chang, 2013 U.S. Dist. LEXIS 159197 (N.D. Cal. Nov. 6, 2013).
The Changs operated a dry cleaner business on their property from 1977…
Hawaii Court Finds No Bad Faith, But Negligent Misrepresentation Claim Survives Summary Judgment in Construction Defect Action
By Tred R. Eyerly on
Judge Mollway, U.S. District Court Judge for the District of Hawaii, found the insurer was not in bad faith for allegedly leading its insured to believe that construction defects would be covered under the policy. The court, however, allowed the insured's negligent misrepresentation claim to survive summary judgment. Ill Nat'l Ins. Co v. Nordic …
Alabama Supreme Court Finds No Coverage for Construction Defect to Contractor’s own Product
By Tred R. Eyerly on
The Alabama Supreme Court followed prior precedent and found that the contractor's faulty workmanship causing damage to his own product did not arise from an occurrence. Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2013 Ala. LEXIS 122 (Ala. Sept. 20, 2013).
The plaintiffs contracted with Carr to construct a new home.
Short Primer on Insurance Coverage
By Tred R. Eyerly on
The Akamai Money section of yesterday's Honolulu Star-Advertiser published my short article on insurance coverage basics. The article is here.
Coverage Determined for Acquired Business Property In Storage
By Tred R. Eyerly on
The Eighth Circuit determined that business property in storage before the insured could transport the property was covered under the "Newly Acquired or Constructed Property" extension of the commercial property policy. Amera-Seiki Corp. v. The Cincinnati Ins. Co., 2013 U.S. App. LEXIS 14893 (8th Cir. July 23, 2013).
The insured imported computerized…
No Duty To Defend EPA Claim When Injury in Fact Occurred Before Policy Period
By Tred R. Eyerly on
The federal district court determined the insurer had no coverage obligations for environmental damage when the injury in fact occurred long before the policy period. Alabama Gas Corp. v. Travelers Cas & Sur. Co., 2013 U.S. Dist. LEXIS July 16, 2013).
The predecessor of Alabama Gas Corp. manufactured gas on the property…
U.S. District Court for Hawaii Again Determines Construction Defect Claims Do Not Arise From An Occurrence
By Tred R. Eyerly on
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…