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Headline Construction Defects Insurance Legal News from LexisNexis®

• Professional Services Exclusion Bars Coverage, New Jersey Judge Says
  TRENTON, N.J. - A primary and excess liability policy's professional services exclusion bars coverage for underlying claims stemming from a garage collapse that killed four people and injured others, a federal judge ruled June 5 (Wimberly Allison Tong & Goo Inc. v. Travelers Property Casualty Company of America, et al., No. 05-2550, D. N.J.; 2008 U.S. Dist. LEXIS 44381). Full story on lexis.com
• Pennsylvania Judge Rejects Serious Impairment Standard In Collapse Claim Case
  PHILADELPHIA - A Pennsylvania judge ruled June 17 that a collapse provision that defines "collapse" as the "sudden and entire falling down or caving in of a building" yet covers collapse caused by hidden insect damage does not cover termite damage or the voluntary tearing down of a termite-damaged structure (John Miller v. First Liberty Insurance Corp., d/b/a Liberty Mutual Insurance Group, No. 07-1338, E.D. Pa.; 2008 U.S. Dist. LEXIS 47550). Full story on lexis.com
• Claim Barred By Faulty Workmanship Exclusion, Judge Rules
  TACOMA, Wash. - Ice buildup at a cold storage facility is a fortuitous event, a federal judge ruled June 23. However, the judge found that the loss was barred by the all-risk policy's faulty workmanship exclusion (Terminal Freezers Inc. v. U.S. Fire Insurance, No. C07-0090BHS, W.D. Wash.; 2008 U.S. Dist. LEXIS 48280). Full story on lexis.com
• Roofing Exclusion Does Not Bar Coverage, 6th Circuit Rules
  CINCINNATI - The Sixth Circuit U.S. Court of Appeals on June 23 upheld a finding of coverage for water damage to a restaurant caused by an exposed roof during a sudden storm, holding that the policy's membrane roofing exclusion does not apply and that the insurer failed to meet its burden of proof on the open-roof exclusion (Essex Insurance Co. v. Fidelity & Guaranty Insurance Underwriters Inc., No. 07-1803, 6th Cir.; 2008 U.S. App. LEXIS 13490). Full story on lexis.com
• Indemnity Claims Against Contractor, Subcontractor To Proceed
  NEW YORK - A New York justice on June 13 denied summary judgment to a general contractor and its subcontractor in a dispute over reimbursement for water damage caused by the alleged faulty installation of an ice maker in a renovation project, finding issues of fact over whether the plumber adequately tested the lines upon completion of the installation preclude summary judgment (American International Insurance Co. a/s/o Kenneth Hubbard, et al. v. Sub Zero Freezer Co., et al., No. 105718/05, N.Y. Sup., New York Co.; 2008 N.Y. Misc. LEXIS 3455). Full story on lexis.com
• Earth Movement, Water Exclusions Unambiguous, Judge Says
  CONCORD, N.H. - Damage to a country club pool allegedly caused by draining the pool after days of saturating rainfall is excluded under a property insurance policy's earth movement and water exclusions, a federal judge ruled June 24, also holding that coverage is barred under the anti-concurrent causation clause in the policy (Amherst Country Club Inc. v. Harleysville Worcester Insurance Co., No. 07-cv-136-JL, D. N.H.; 2008 U.S. Dist. LEXIS 48481). Full story on lexis.com
• California Court Lifts Stay, Allows Duty To Defend Case To Proceed
  SAN FRANCISCO - The First District California Court of Appeal on June 17 lifted a stay on an insurer's declaratory judgment action to determine whether it has a duty to defend an underlying construction defects action. The appeals court found no reason for the action to be stayed while the underlying action is pending (Scottsdale Insurance Co. v. The Superior Court of the City and County of San Francisco, No. A120916, Calif. App., 1st Dist.; 2008 Cal. App. Unpub. LEXIS 48280). Full story on lexis.com
• Court: Issues Of Fact Exist Over Insurers' Duty To Defend
  LOS ANGELES - Triable issues of fact exist over whether two liability insurers share a joint defense obligation to a common insured from claims stemming from an underlying construction defects lawsuit, the Second District California Court of Appeal ruled June 5, reversing a grant of summary judgment (Golden Eagle Insurance Co. v. Crusader Insurance Co., No. B195904, Calif. App., 2nd Dist.; 2008 Cal. Unpub. LEXIS 4571). Full story on lexis.com
• Judge: Date As To Manifestation Of Damage Unclear
  TRENTON, N.J. - Issues of fact as to the timing of the manifestation of stone damage in a home development precludes a summary judgment ruling in an insurer's declaratory judgment action over its duty to defend, a judge ruled June 6 (Wausau Underwriters Insurance Co., et al. v. State Automobile Mutual Insurance Co., et al., No. 07-1316, D. N.J.; 2008 U.S. Dist. LEXIS 44612). Full story on lexis.com