A commentary on insurance coverage issues in Hawaii and beyond
The court rejected the insurer's arguments that the business risk exclusions barred coverage for a contractor. Gen. Cas. Co. of Wisconsin v. Five Star Bldg. Corp., 2013 U.S. Dist. LEXIS 134122 (D. Mass. Sept. 19, 2013).
Five Star was hired by the University of Massachusetts to upgrade the ventilation (HVAC) system…
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 …
The South Carolina Supreme Court held that continuing damage that was part of a continuum of property damage constituted an "occurrence." Auto-Owners Ins. Co. v. Rhodes, 2013 S.C. LEXIS 248 (Sept. 25, 2013).
Rhodes hired Eadon to design, fabricate, and erect three outdoor advertising signs on Rhodes' property bordering an interstate highway.
The Texas Supreme Court held that a home builder was covered for the voluntary removal and replacement of a defective insulation product it had installed in hundreds of homes. Lennar Corp. v. Market Am. Ins. Co., 2013 Tex. LEXIS 597 (Tex. Sup. Ct. Aug. 23, 2013).
Lennar built homes using an exterior…
A gunshot killed one and injured others. Rejecting arguments for a multiple occurrence, the Alaska determined there was one occurrence despite several injuries. United Serv. Auto. Ass'n v. Neary, 2013 Alas. LEXIS 102 (Alaksa Aug. 16, 2013).
The insured's teenage son fatally one friend and seriously injured another with one of his…
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…
The Third Circuit affirmed the District Court's finding that the insurers had no duty to defend day care and youth centers for bribes and kickbacks allegedly paid to two state court judges. Markel Int'l Ins. Co. v. W. Childcare, LLC, 2013 U.S. App. LEXIS 14017 (3d Cir. July 8, 2013).
In 2009…
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…
The insured's effort to expand the California Supreme Court's decision in Montrose did not survive the Ninth Circuit's review. City of San Buenaventura v. The Insurance Company of the State of Pennsylvania, 2013 U.S. App. LEXIS13084 (9th Cir. June 26, 2013).
The City of San Buenaventura contracted with a developer to build…
