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Mealey's Construction Defects Insurance

  • September 12, 2025

    Insured Condo Association Settles Water Damage Suit With Insurer; Suit Dismissed

    SEATTLE — A Washington federal judge dismissed a water damage coverage suit filed by an insured condominium association against its insurer after the parties reached a settlement and stipulated to dismissal of the suit.

  • September 11, 2025

    Judge Grants Stipulation Of Dismissal After Insurer, Home Installer Settle Suit

    RICHLAND, Wash. — A federal judge in Washington granted a commercial general liability insurer and manufactured home installer’s stipulated motion and order of dismissal of the insurer’s declaratory judgment action against the manufactured home installer and the couple who had a manufactured home on their property, after the parties informed the court that the homeowners and home installer settled the underlying suit regarding defects in the installation of the manufactured home and the home installer and insurer had settled the claims in the suit.

  • September 10, 2025

    Judge Denies Builder’s Bid For Reconsideration, Finds No Policy Coverage

    HOUSTON — A federal judge in Texas denied a homebuilder’s motion for reconsideration of the judge’s ruling granting summary judgment in favor of its commercial liability insurer in the builder’s suit seeking indemnification for a $213,000 arbitration award for damages caused by construction defects in a home it built, holding that no coverage existed under the policy.

  • September 10, 2025

    Developer Argues Genuine Issues Exist As To Whether Defects Coverage Exists

    SAN FRANCISCO — A housing developer opposed its excess insurer’s motion for summary judgment in the developer’s breach of contract case in federal court in California against the insurer after the homeowners reported construction defects, arguing that genuine issues of material fact exist as to whether the insurer had breached its contract.

  • September 10, 2025

    Judge Dismisses Builder’s Construction Defects Coverage Suit Following Resolution

    PHOENIX — An Arizona federal judge directed the court clerk to enter a judgment of dismissal with prejudice in 60 days the same day the parties filed a joint notice that they have resolved a builder’s construction defects coverage suit.

  • September 09, 2025

    Insurer Dismisses Contractor From Coverage Dispute Over Construction Defects Suit

    WASHINGTON, D.C. — A federal judge issued a minute order granting a commercial general liability insurer’s voluntary dismissal of a contractor in a declaratory lawsuit determining whether it owes its policyholders a duty to defend or indemnify them for claims of construction defects brought by a group of condominium residents in an underlying state court suit.

  • September 08, 2025

    Magistrate Denies Motion For Reconsideration In Breach Of Contract Action

    PHILADELPHIA — A Pennsylvania federal magistrate judge denied a homeowner’s motion for reconsideration of the magistrate’s denial of his amended complaint against an insured for damages he was awarded in an underlying suit against an insured contractor for faulty workmanship, finding that the homeowner’s arguments had already been litigated or could not be brought on a motion for reconsideration.

  • September 04, 2025

    Judge Denies Dismissal Of Claims In Property Damage Indemnity Suit, Grants Stay

    NEW YORK — A federal judge in New York dismissed a geotechnical engineering consultant’s motion to dismiss claims brought against it by a condominium building owner’s insurer seeking a declaration that the consultant should defend and indemnify the building owner in an underlying suit brought by an adjacent building owner after its building was damaged during the construction of the condominium building, finding the case ripe.

  • September 04, 2025

    Faulty Grain Silo Coverage Suit Dismissed On Remand Per Parties’ Stipulation

    LAREDO, Texas — A federal judge in Texas dismissed with prejudice an insurer’s declaratory judgment action the same day the insurer, an insured contractor and a farmers cooperative filed a joint motion to dismiss the insured’s suit seeking a coverage declaration for the defective construction of grain silos.  The stipulation was filed the day after a magistrate judge issued an order scheduling a conference in preparation for a fall trial.

  • September 03, 2025

    Coverage Case Over Incorrectly Constructed Poultry Houses Dismissed Per Stipulation

    BIRMINGHAM, Ala. — A federal court in Alabama in a text-only docket order closed an insurer’s declaratory judgment case against its contractor insureds and the company that hired them to construct poultry houses the same day the parties jointly stipulated to dismissal of the suit without prejudice.

  • September 03, 2025

    9th Circuit Won’t Rehear Case Finding No Coverage For Substandard Work Claims

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals denied an electrical contractor’s petition for panel rehearing in a case brought by the contractor’s commercial liability insurer where the court found that the insurer owed no coverage for an underlying action alleging that the contractor’s substandard work led to flooding damage to switchgear.

  • August 26, 2025

    Condo Developer’s Concrete Slab Coverage Suit Dismissed In Wake Of Settlement

    DENVER — A federal judge in Colorado dismissed with prejudice a condominium developer’s suit against its builders risk insurer the same day the parties filed a joint stipulation of dismissal.  The parties in July notified the court that they had reached a settlement in the case, which had been scheduled to go to trial in January 2026 after the 10th Circuit U.S. Court of Appeals in December reversed a $2.54 million jury award in favor of the developer and remanded for a new trial.

  • August 26, 2025

    Insurer’s Action Against Construction Manager, Homeowners Not Time-Barred

    ST. LOUIS — A federal judge in Missouri denied motions to dismiss filed by a construction manager and homeowners in an action brought by the construction manager’s insurer seeking a declaration that the insurer owed no duty to its insured in a complaint brought against the construction manager for events arising out of the construction of the homeowners’ house; the judge found that the insurer’s complaint was not time-barred and that the claim was ripe.

  • August 25, 2025

    Judge Grants Contractor, Homebuilder’s Motion For Attorney Fees

    ORLANDO, Fla. — A federal judge in Florida adopted a magistrate judge’s report and recommendation granting a general contractor and homebuilder’s motions for entitlement to attorney fees following a summary judgment ruling in their favor in a commercial liability insurer’s lawsuit seeking a declaration as to coverage for construction-related damages at a condominium development.

  • August 25, 2025

    Judge Dismisses Contractor’s Coverage Suit After Parties Announce Settlement Reached

    FLORENCE, S.C. — A federal judge in North Carolina dismissed a contractor’s coverage suit stemming from water intrusion and other construction defect issues at a mixed-use development project, noting that the parties have indicated that they have reached a settlement.

  • August 21, 2025

    Insurers Denied Reconsideration Of Summary Judgment For Faulty Work, Water Damage

    NEW YORK — A federal judge in New York denied two insurers’ motions for reconsideration of the denial of their motions for summary judgment in connection with coverage for an underlying suit brought by a developer against a construction manager for allegedly faulty work and water damage to a project in New York, finding one insurer’s motion to be procedurally improper and to fail on the merits and the other’s interpretation of “property” in the Contractors Exclusion to not be the only interpretation of “property” available.

  • August 21, 2025

    Insurer Argues Court Properly Determined Breach Of Contract Action Failed

    PHILADELPHIA — In opposing a homeowner’s motion for reconsideration of a Pennsylvania federal magistrate judge’s dismissal of his amended complaint for damages he was awarded in an underlying suit against an insured contractor, an insurer argues that the magistrate properly determined that the homeowner’s breach of contract cause of action failed and that the homeowner is merely rehashing old arguments.

  • August 19, 2025

    Pollution Exclusion Bars Coverage For Carbon Monoxide Leak, Insurer Says

    JACKSONVILLE, Fla. — An insured is not entitled to defense or indemnity for underlying lawsuits seeking damages caused by carbon monoxide exposure stemming from the faulty installation of tankless hot water heaters because the policy’s total pollution exclusion bars coverage, an insurer asserts in a complaint filed in Florida federal court.

  • August 18, 2025

    Insurer, Property Owner Seek Protective Order In Suit Over Defective Workmanship

    PHOENIX — An excess commercial insurer and an apartment complex owner asked an Arizona federal court to issue a protective order as to discovery in the insurer’s lawsuit seeking a declaration that an underlying $6 million stipulated judgment arising from defective workmanship claims cannot be enforced against it.

  • August 15, 2025

    Judge Determines Duties Among Insurers After HVAC Leak Creates Water Damage

    NEW YORK — A federal judge in New York determined the duties to defend among insurers after a general contractor’s insurer sued subcontractors’ insurers to defend the general contractor in an underlying state court case alleging water damage to an Old Navy store occurred after leaky brass valves were installed during work done on its HVAC system.

  • August 15, 2025

    Insured: 9th Circuit Wrong In Finding No Coverage For Substandard Work Claims

    PASADENA, Calif. — An electrical contractor filed a petition for panel rehearing with the Ninth Circuit U.S. Court of Appeals, arguing that the panel was wrong to find that a commercial general liability insurer owed no coverage for an underlying action alleging that the contractor’s substandard work led to flooding damage to switchgear.

  • August 14, 2025

    Pa. Federal Judge Dismisses Bad Faith Claim In Dust Contamination Coverage Suit

    PHILADELPHIA — A Pennsylvania federal judge on Aug. 13 dismissed a bad faith claim alleged against a homeowners insurer after determining that the insureds, who are seeking coverage for an infiltration of dust in their home, failed to show that the insurer’s denial of coverage based on the policy’s exclusions for pollution and defective workmanship was unreasonable.

  • August 13, 2025

    Insurers’ Motions For Default, Dismissal Against Roofer For Faulty Work Granted

    NEW YORK — A federal judge in New York granted both a limited liability company’s insurer’s motion for default judgment in its third-party subrogation complaint against a roofer and the roofer’s commercial general liability insurer’s motion to dismiss the roofer’s fourth-party complaint against it, finding the roofer had adequate time to retain new counsel after its counsel withdrew and did not retain new counsel, and therefore could not prosecute its claim against its insurer or defend the company’s insurer’s subrogation claim.

  • August 12, 2025

    Cross-Motions For Summary Judgment In Suit Over Faulty Plumbing Coverage Denied

    SEATTLE — A federal judge in Washington denied cross-motions for summary judgment filed in a case brought by a pet rescue company against its plumber’s insurers, seeking garnishment of the plumber’s policies to cover damage caused by the plumber’s faulty work, finding that the evidence the parties provided was not clear enough to determine whether the damage was covered.

  • August 11, 2025

    Judge Remands Case Against Insurer, Roofer, Finds Joinder Appropriate

    MIAMI — A federal judge in Florida remanded a condominium’s case against an insurer and roofer for damages that were discovered after a tropical storm, finding that, while unusual, the condominium association properly alleged that it is entitled to compensation either because the roofer negligently caused damage to the roof or the tropical storm damaged the roof.