The federal district court found no duty to defend claims of faulty workmanship under certain policies issued to the insured contractor, but rejected arguments made by the Insurers regarding various provisions of the general liability and excess policies. St. Paul Fire & Marine Ins. Co. v. Bodell Consr. Co., 2022 U.S. Dist.
Duty to defend
Underlying Plaintiff Lacks Standing to Challenge Denial of Defense to Insured
By Tred R. Eyerly on
The Eleventh Circuit held that a victim of sexual abuse could not appeal a declaratory judgment that the insurer had no duty to defend the accused insured. Nationwide Mut. Ins. Co. v. Barrow, 2022 U.S. App. LEXIS 8267 (11th Cir. March 29, 2022).
A.B. was sexually abused by David Barrow…
Construction Defect Claims Not Covered
By Tred R. Eyerly on
The court found that the insured's negligent acts causing damage to only the structure of the home it built were not covered under the CGL policy. Westfield Ins. Co. v. Zaremba Builders II LLC, 2022 U.S. Dist. LEXIS 36189 (N.D. Ill. March 2, 2022).
Zaremba contracted to build a house…
Texas Supreme Court Holds Stipulated Extrinsic Evidence May Be Considered in Determining Duty to Defend
By Tred R. Eyerly on
Responding to certified questions from the Fifth Circuit, the Texas Supreme Court held that in limited circumstances, extrinsic evidence may be considered in determining the duty to defend. Monroe Guar. Ins. Co. v. Bitco Gen. Ins. Corp., 2022 Tex. LEXIS 148 (Tex. Feb. 11, 2022).
The two insurers each provided…
Insurer Must Defend Faulty Workmanship Claims
By Tred R. Eyerly on
The court determined that the insurer improperly denied a defense for construction defect claims made against the insured. Amerisure Mut. Ins. Co. v. McMillin Tex. Homes, 2022 U.S. Dist. LEIS 40363 (W.D. Texas March 8, 2022).
McMillin was a developer, general contractor and home seller. It constructed multiple homes in…
Prior Occurrence Exclusion Bars Coverage for Construction Defects
By Tred R. Eyerly on
While the insured's faulty work constituted an occurrence under Florida law, a prior occurrence exclusion barred coverage. Pro-Tech Caulking & Waterproofing v. TIG Ins. Co., 2022 U.S. Dist. LEXIS 12319 (S.D. Fla. Jan. 19, 2022).
Pro-Tech was a waterproofing subcontractor for construction of a oceanfront condominium building and was responsible…
Burden to Prove Exception to Exclusion Falls on Insured
By Tred R. Eyerly on
In a dispute between two insurers, the Ninth Circuit relied upon Nevada law in finding that the burden of proving that an exception to the exclusion applies was on the insured. Zurich Am. Ins. Co. v. Ironshore Specialty Ins. Co., 2022 U.S. App. LEXIS 1626 (9th Cir. Jan. 20, 2022).
…
No Duty to Defend Opioid Cases Where Only Economic Damages Sought in Underlying Case
By Tred R. Eyerly on
Reversing the lower court, the Delaware Supreme Court found there was not duty to defend a supplier of opioids when the counties pursuing the underlying litigation only sought economic losses. Ace Am. Ins. Co. v. Rite Aid Corp., 2022 Del. LEXIS 9 (Del. Jan. 10, 2022).
Two Ohio counties sued Rite Aid to recover…
Fifth Circuit Finds Duty to Defend Construction Defect Case
By Tred R. Eyerly on
Reversing the judgment of the district court, the Fifth Circuit found the insurer owed a defense in a construction defect case. Siplast, Inc. v. Emplrs Mut. Cas. Co., 2022 U.S. App. LEXIS 795 (5th Cir. Jan. 11, 2022).
The Archdiocese of New York sued various parties for a roofing project…
Primary D&O Policy Must Defend Despite Other Insurance Provision
By Tred R. Eyerly on
The federal district court found that the D&O carrier had a duty to defend despite the insurer's argument that its policy was excess to the employment practices policy. TriPacific Capital Advisors, LLC v. Federal Ins. Co., 2021 U.S. Dist. LEXIS 222497 (D. Calif. Nov. 15, 2021).
Geoffrey Fearns was President…