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Mealey's Construction Defects Insurance

  • February 04, 2025

    Judge: Subcontractors’, Contractor’s Insurers Owe Defense In Gym Water Leak Suit

    LOS ANGELES — The “broad duty to defend” was triggered for both a contractor and two subcontractors in an underlying suit over damage from a water leak, a California federal judge found, leading her to partly grant the subcontractors’ motions to dismiss the commercial general liability (CGL) insurer’s suit seeking declarations that it was not obligated to provide coverage.

  • February 04, 2025

    Condo Association’s Motion To Amend Complaint Against Insurers Deemed Untimely

    JACKSONVILLE, Fla. — A condominium association, which is the assignee of a contractor’s rights in a dispute over insurance coverage for a construction defects lawsuit settlement, saw its motion to amend its complaint to correct a “drafting error” denied by a Florida federal judge who found that the plaintiff offered no justification to amend more than 10 months after the court-appointed deadline had passed.

  • February 03, 2025

    Federal Judge Dismisses Suit After Condo Association, Insurer Settle All Claims

    DALLAS — The same day the parties announced that they reached a settlement, a federal judge in Texas dismissed a condominium association’s breach of contract and bad faith lawsuit against its insurer seeking coverage for property damage caused by “construction, lack of maintenance, faulty repairs, defective materials, [and] storms.”

  • February 03, 2025

    Insureds: Insurers ‘Flouted’ Order Compelling Discovery In Defects Coverage Suit

    NEWARK, N.J. — Insureds asked a New Jersey court to dismiss their insurers’ lawsuit disputing coverage for an underlying construction defects lawsuit, arguing that the insurers “have refused to meaningfully participate in the discovery process, repeatedly ignored deadlines and discovery rules, flouted this Court’s Order compelling discovery, and otherwise delayed the progression of this litigation.”

  • February 03, 2025

    Federal Judge Denies CGL Insurer’s Motion To Dismiss 2 Of Contractor’s Claims

    OAKLAND, Calif.— A federal judge in California denied a commercial general liability insurer’s motion to dismiss a licensed general contractor insured’s claims for declaratory relief for the appointment of Cumis counsel and punitive damages in his lawsuit seeking coverage for an underlying lawsuit alleging that the work on a renovation project was negligent.

  • February 03, 2025

    Judge Dismisses Cross-Claims Between Insurers, Subcontractor In Mold Damage Coverage Suit

    LAS VEGAS — A federal judge in Nevada issued two orders dismissing with prejudice cross-claims between professional liability insurers and a subcontractor in a mold and moisture damage coverage dispute.

  • January 27, 2025

    Subcontractor Offers Judgment In Suit Arising From Damage To Construction Project

    FORT LAUDERDALE, Fla. — A subcontractor filed a notice in a Florida federal court serving offer of judgment to a plaintiff in its lawsuit alleging that a surety breached a performance bond by denying liability for damage to its construction project allegedly caused by the subcontractor’s “defective and deficient work.”

  • January 27, 2025

    Federal Judge Refuses To Disturb Take-Nothing Judgment In Suit Over Negligent Work

    HOUSTON — A federal judge in Texas on Jan. 24 denied plaintiffs’ motion for relief from a take-nothing judgment and motion for rehearing in their lawsuit seeking to recover an underlying $542,000 final default judgment against a construction company from the company’s insurer, finding that Federal Rule of Civil Procedure 60(b)(6) does not apply and Rule 60(d)(2) does not entitle the plaintiffs to relief.

  • January 27, 2025

    Split Minnesota Panel: Insurer’s Claims Against Contractor Not Time-Barred

    ST. PAUL, Minn. — A split panel of the Minnesota Court of Appeals found that an insurer’s breach of contract and negligence claims against a general contractor and subcontractor in a defective construction dispute are not time-barred under Minnesota’s statute of limitations, reversing a lower court’s order dismissing the case and remanding it to the trial court.

  • January 27, 2025

    Condo Developer Asks 10th Circuit To Reconsider Ruling Granting New Trial

    DENVER — A condominium developer filed a “relatively narrow” petition in the 10th Circuit U.S. Court of Appeals seeking a panel rehearing of the court’s grant of an new trial following its reversal of a $2.54 million jury award in favor of the developer after finding that the developer cannot recover under a builders risk insurance policy for repair costs of a cracked concrete slab that it has not paid and has no obligation to pay, arguing that rehearing is both “appropriate and necessary” to correct the court’s errors, preserve the parts of the jury verdict that were fairly found and “avoid the significant costs of a wholesale retrial.”

  • January 24, 2025

    6th Circuit Denies Building Owner, Contractor’s Rehearing Petitions In Collapse Suit

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals denied petitions for rehearing filed by a building owner and a contractor, refusing to reconsider a panel’s finding that coverage is owed only for a portion of a wall that collapsed in a building that was undergoing renovation.

  • January 21, 2025

    Building Owner Appeals Attorney Fee Award In Coverage Suit Over Structural Damage

    PHOENIX — A building owner insured filed a notice in an Arizona federal court indicating that it is appealing the court’s order awarding $198,234 in attorney fees to a commercial property insurer after granting the insurer’s motion for summary judgment in the insured’s breach of contract and bad faith lawsuit seeking coverage for structural damage to its building.

  • January 21, 2025

    Judge Tosses Insurer’s Claims Against Condo Corp. For Lack Of Personal Jurisdiction

    NEW YORK — A federal judge in New York “easily” granted a Texas condominium corp.’s motion to dismiss an insurer’s declaratory judgment lawsuit arising from issues with an emergency mitigation project to repair property damage caused by Hurricane Harvey, finding that the court lacks personal jurisdiction over the defendant under New York's long-arm statute and that the defendant is not bound by the insurance policy’s forum selection clause.

  • January 10, 2025

    Panel Reverses Ruling For Contractor, Remands To Grant Judgment To Insurer

    WEST PALM BEACH, Fla. — A Florida appeals panel reversed a lower court’s final summary judgment in favor of a general contractor in its declaratory judgment lawsuit seeking coverage for  water damage at a building project and remanded for the lower court to grant final summary judgment in favor of the insurer.

  • January 07, 2025

    Building Owner, Contractor Say Rehearing En Banc Is Warranted In Collapse Suit

    CINCINNATI — A building owner and a contractor filed petitions for rehearing en banc in the Sixth Circuit U.S. Court of Appeals, contending that rehearing en banc is warranted because the panel’s finding that coverage is owed only for a portion of a wall that collapsed in a building that was undergoing renovation is inconsistent with a prior Sixth Circuit opinion and other prevailing case law within the Sixth Circuit.

  • January 06, 2025

    10th Circuit Reverses Verdict In Condo Developer’s Favor, Remands For New Trial

    DENVER — The 10th Circuit U.S. Court of Appeals reversed a jury $2.54 million award in favor of a condominium developer and remanded for a new trial after finding that it cannot recover under a builders risk insurance policy for repair costs of a cracked concrete slab that it has not paid and has no obligation to pay.

  • January 06, 2025

    Wisconsin Majority: Exception To Construction Defect Exclusion Reinstates Coverage

    WAUKESHA, Wis. — A majority of a Wisconsin appeals court reversed a lower court’s grant of summary judgment in favor of a homeowners insurer in its lawsuit challenging coverage for its insureds’ rain damage, finding that the ensuing cause of loss exception to the insurance policy’s Construction Defect Exclusion reinstates coverage and an additional coverage endorsement renders the policy’s Fungi Exclusion inapplicable.

  • January 02, 2025

    7th Circuit Won’t Reconsider Ruling That Insurer Has Duty To Defend Architect

    CHICAGO — The Seventh Circuit U.S. Court of Appeals will not reconsider its ruling that a commercial general liability insurer has a duty to defend its architectural company insured against an underlying lawsuit asserting that it inadequately designed and oversaw the construction of an Iowa building, rejecting the insurer’s challenge to its finding that the intervening decision by the Illinois Supreme Court in Acuity v. M/I Homes of Chicago, LLC indicates that the insurer owes an underlying defense.

  • December 23, 2024

    Subcontractor’s Insurer’s Declaratory Claims Against Contractor Are Dismissed

    MIAMI — Finding that the underlying complaint a contractor filed against a subcontractor alleges property damage under the subcontractor’s commercial general liability policy but that the “your work” exclusion may apply, a federal judge in Florida on Dec. 20 denied dismissal of the insurer’s claims for a declaration that it has no duty to defend the subcontractor; however, the judge found that a declaration regarding the insurer’s duty to indemnify is premature and dismissed the contractor from the insurer’s action.

  • December 19, 2024

    Va. Judge Dismisses Contractor’s Counterclaim, Awards Judgment To Excess Insurer

    FAIRFAX, Va. — Finding that a second-layer excess insurer did not breach its contract with its construction manager insured when it failed to indemnify the insured for its $24 million contribution to settle construction defects alleged by its client, a Virginia judge dismissed the insured’s counterclaim and entered judgment in favor of the insurer.

  • December 18, 2024

    Breach Of Contract, Insurance Code Claims Dismissed In Leaky Roof Coverage Suit

    McALLEN, Texas — After reviewing a magistrate’s judge’s memorandum and recommendation to which both parties in a suit over coverage for a leaky replacement roof objected, a federal judge in Texas found no error and adopted the recommendation, dismissing without prejudice the property owner’s breach of contract action against a subcontractor’s insurer and dismissing with prejudice Insurance Code claims against the insurer brought on behalf of the deceased subcontractor.

  • December 17, 2024

    Massachusetts Magistrate Judge Compels Roof Material Maker To Disclose Documents

    SPRINGFIELD, Mass. — A Massachusetts federal magistrate judge has granted an order compelling a roof coating maker to produce relevant documents in a construction defect suit and related insurance coverage litigation.

  • December 16, 2024

    Coverage Dispute Over Conveyance Pipe Construction Closed After Dismissals

    SEATTLE — Following several orders granting stipulated motions to dismiss, a federal court in Washington has issued a judgment ordering a coverage dispute over faulty construction allegations related to a conveyance pipe for a sewer overflow control project to be closed.

  • December 16, 2024

    Federal Judge Refuses To Dismiss Bad Faith Suit Arising From Roof Damage

    SIOUX FALLS, S.D. — A federal judge in South Dakota denied a property insurer’s motion to dismiss insureds’ breach of contract, bad faith and declaratory judgment lawsuit prompted by the insurer’s denial of coverage for damage to the insureds’ roof under the policy exclusion due to faulty construction or design, finding that the court is not convinced the insureds’ alleged loss arose out of the weight of water or ice.

  • December 16, 2024

    5th Circuit: No Coverage For Insured’s Loss Due To Surface Water, Faulty Workmanship

    NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals affirmed a lower federal court’s summary judgment ruling in favor of a homeowners insurer in an insured’s breach of contract and bad faith lawsuit arising from a pool deck renovation that caused water damage to the insured’s rental property, finding that the undisputed evidence attributes the insured’s loss to surface water and faulty workmanship, which are excluded from coverage.