The Hawaii Supreme Court vacated the decision of the Intermediate Court of Appeals [see prior post here] and determined that a subcontractor did not have a duty to defend the developer upon tender under an indemnify provision in the parties' contract. Arthur v. State of Hawaii, 2016 Haw. LEXIS 155 (June 27, 2016).
Subsurface Water Exclusion Found Unambiguous
By Tred R. Eyerly on
The Eighth Circuit rejected the policyholder's appeal on the ambiguity of a subsurface water exclusion. Bull v. Nationwide Mut. Fire Ins. Co., 2016 U.S. App. LEXIS 9703 (8th Cir. May 27, 2016).
Michael Bull, the insured, experienced a leak from a buried pipe beneath his garage slab. The leak caused…
Bad Faith Jury Verdict Upheld After Insurer’s Failure to Settle Within Policy Limits
By Tred R. Eyerly on
The Eighth Circuit affirmed the jury verdict which determined that the insurer acted in bad faith for failing to settle within policy limits. Bamford, Inc. v. Regent Ins. Co., 2016 U.S. App. LEXIS 8787 (8th Cir. May 13, 2016).
In May 2009, an employee of Bamford caused a vehicular accident resulting in…
Duty to Defend Continues After Response to 104 (e) Letter Submitted
By Tred R. Eyerly on
The Ninth Circuit held that the insurers' duty to defend did not cease after the insured submitted its response to the EPA in a section 104 (e) letter. Ash Grove Cement Co. v. Liberty Mut. Ins. Co., 2016 U.S. App. LEXIS 8663 (9th Cir. May 11, 2016).
Ash Grove operated two cement plants…
No Coverage for Faulty Workmanship Where Underlying Claim is Strictly Breach of Contract
By Tred R. Eyerly on
Considering certified questions from the federal district court, the Arkansas Supreme Court followed a prior decision in deciding there was no coverage for property loss caused by faulty workmanship based solely on breach of contract. Columbia Ins. Group, Inc. v. Cenark Project Mgt. Services, Inc., 2016 Ark. LEXIS 185 (Ark. April 28, 2016).
…
Assignment of Policies Barred by Anti-Assignment Provision
By Tred R. Eyerly on
The Minnesota Court of Appeals enforced the policy's anti-assignment provisions for the assignment of no-fault insurance claims to a medical provider. Stand Up Multipositional Advantage MRI, P.A. v. Family Ins. Co., 2016 Minn. App. LEXIS 24 (Minn. Ct. App. April 25, 2016).
Stand Up Multipositional Advantage MRI (SUMA) operated a clinic…
“Occurrence” May Include Intentional Acts In Montana
By Tred R. Eyerly on
The Montana Supreme Court found that policy language defining "accidents may include intentional acts." Employers Mut. Cas. Co. v. Fisher Builders, Inc., 2016 Mont. LEXIS 269 (Mont. Sup. Ct. April 19, 2016).
Jerry and Karen Slack hired Fisher Builders to build a remodeled home located on the site of their…
Supplier’s Purchase Order Does Not Confer Additional Insured Status
By Tred R. Eyerly on
The district court ruled that there was no duty to defend the purported additional insured because a purchase order did not invoke additional insured status. Fed. Signal Corp. v. Tammcor Indus., 2016 U.S. Dist. LEXIS 47574 (N.D. Ill. April 7, 2016).
Federal Signal designed a speaker system that was installed on a…
Coverage For Faulty Workmanship Not Saved Under Ensuing Loss Provision
By Tred R. Eyerly on
The policy’s faulty workmanship exclusion barred coverage despite an ensuing loss provision. Gateway II LLC v. Hartford Fire Ins. Co., 2016 N. Y. Misc. LEXIS 1325 (Sup. Ct. N. Y. April 5 , 2016).
Water damage occurred at Gateway. The policy provided, “We will not pay for loss or damage caused by or resulting…
No Indemnity After Insured Settles Breach of Implied Warranty of Habitability Claims
By Tred R. Eyerly on
Applying Illinois law, the federal district court ruled that there was no coverage for the insured's settlement of claims based upon breach of the implied warranty of habitability. Allied Prop. & Cas. Ins. Co. v. Metro North Condo. Ass'n, 2016 U.S. Dist. LEXIS 43452 (E.D. Ill. March 31, 2016).
Metro North sued…