builder general insurance liability

LexisNexis® Mealey's™ Construction Defects Insurance Legal News
Headline Construction Defects Insurance Legal News from LexisNexis®

• Texas High Court Adopts Actual Injury Rule For Progressive Damage
  AUSTIN, Texas - Answering certified questions regarding damage from defective construction, the Texas Supreme Court on Aug. 29 looked to specific occurrence-based policy language to rule that the duty to defend is triggered when hidden damage is alleged to have occurred during the policy period, not when it was later discovered after the policy expired (Don's Building Supply Inc. v. OneBeacon Insurance Co., No. 07-0639, Texas Sup.; 2008 Tex. LEXIS 753; See September, Page 17). Full story on lexis.com
• Washington High Court: Contribution Claim For Settlement Costs Barred
  OLYMPIA, Wash. - Applying the "selective tender" rule, the Washington high court reversed an appeals court decision in favor of a trial court's entry of summary judgment to a carrier, ruling on Sept. 4 that settled insurers' equitable contribution claim is barred because an insured chose not to tender to the carrier before the settlement (Mutual of Enumclaw Insurance Co. and Commercial Underwriters Insurance Co. v. USF Insurance Co., No. 80199-1, Wash. Sup.; 2008 Wash. LEXIS 817). Full story on lexis.com
• Damages Limited By Insured Contract; Insurers Not Jointly, Severally Liable, Judge Holds
  SEATTLE - A general contractor's indemnity damages are not limited to those amounts identified by experts with regard to the work of a subcontractor; however, those damages are limited by the contract in which it was a named insured, and insurers are not jointly and severally liable, a Washington federal judge found Aug. 29 (Aecon Buildings Inc. v. Zurich North America, et al., No. 07-00832, W.D. Wash.; 2008 U.S. Dist. LEXIS 67330; See August 2008, Page 19). Full story on lexis.com
• 5th Circuit: Insurer Has Duty To Defend, Pay Costs For Defective Construction
  NEW ORLEANS - A commercial general liability insurer has a duty to defend and indemnify a home builder for unpaid portions of costs in a judgment rendered with regard to claims of defective construction, the Fifth Circuit U.S. Court of Appeals affirmed Aug. 26 (Homeowners Management Enterprises Inc. as assignee of Holmes-Redding Builders Inc. v. Mid-Continent Casualty Co., No. 05-11370, 5th Cir.; 2008 U.S. App. LEXIS 18597). Full story on lexis.com
• Insurer Has No Duty To Indemnify Defects Settlement, Judge Says
  INDIANAPOLIS - Finding no "property damage" caused by an "occurrence," an Indiana federal judge ruled Aug. 29 that an insurer has no duty to indemnify a general contractor for a settlement over substandard construction performed by subcontractors and that the insurer did not act in bad faith in the denial of coverage (Westfield Insurance Co. v. Sheehan Construction Co. Inc., et al., No. 05-0617, S.D. Ind.; 2008 U.S. Dist. LEXIS 66843). Full story on lexis.com
• No Duty To Defend Or Reimburse Settlement, 11th Circuit Affirms
  ATLANTA - Because a homeowners insurer did not have a duty to defend an insured for allegations of construction defects, the insurer did not have a duty to reimburse a settlement the insured allegedly paid, the 11th Circuit U.S. Court of Appeals affirmed Aug. 21 (H. Pace Burt Jr. v. Great Northern Insurance Co., No. 08-12206, 11th Cir.; 2008 U.S. App. LEXIS 18054). Full story on lexis.com
• Insurer Owes Defense To Additional Insured, 5th Circuit Concludes
  NEW ORLEANS - An insurer owes a duty to defend an additional insured for allegations over the additional insured's hiring of the named insured in the failed installation of an in-flight entertainment/cabin management system (IFE/CMS), the Fifth Circuit U.S. Court of Appeals held Aug. 4, reversing and remanding (Gore Design Completions Ltd. v. Hartford Fire Insurance Co., No. 08-50042, 5th Cir.; 2008 U.S. App. LEXIS 16481). Full story on lexis.com
• Insured Appeals Ruling Of No Defense, Indemnity For Construction Defects
  PHOENIX - An insured appealed on Aug. 22 to the Ninth Circuit U.S. Court of Appeals an order finding that a commercial general liability insurer does not owe a defense or indemnification for allegations of construction defects (Mt. Hawley Insurance Co. v. Total Building Systems Inc., No. 08-16842, 9th Cir.). Full story on lexis.com
• Judge: Jury To Decide Whether Insurer Held Reasonable Investigation
  CHARLOTTE, N.C. - A jury is to decide whether an insurer conducted a reasonable investigation into allegations of construction defects, a North Carolina federal judge held Aug. 20, denying an insured's motion for reconsideration of his previous order finding fact issues on the duty to defend issue (Amerisure Mutual Insurance Co. v. Superior Construction Corp., No. 07-00276, W.D. N.C.; 2008 U.S. Dist. LEXIS 62458). Full story on lexis.com