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Mealey's Construction Defects Insurance

  • October 10, 2025

    Judge Finds No Coverage After Insurer, Construction Worker Rescind Policy

    LOS ANGELES — A federal judge in California granted an insurer’s motion for summary judgment on its complaint seeking a declaration that an insurance policy it issued to a construction worker had been rescinded and, therefore, that it did not need to provide indemnity for any sums for which the construction worker could be found liable to a property owner whose property was damaged allegedly due to the construction worker’s faulty work; the judge found that the worker and insurance company had mutually rescinded the policy.

  • October 10, 2025

    Judge Determines Insurers’ Split Of Concrete Work Settlement

    ATLANTA — A federal judge in Georgia granted a primary insurer’s motion for summary judgment and denied an umbrella insurer’s motion for summary judgment in a declaratory judgment case seeking to determine the amount of a subcontractor’s $4.5 million settlement over faulty concrete slab-on-grade of an apartment building each is responsible for paying, applying the continuous trigger to hold that coverage was limited to one policy period and the umbrella insurer owed the primary insurer for the amount over the $1 million primary policy coverage limit.

  • October 09, 2025

    Roof Damage Coverage Suit Dismissed With Prejudice After Parties Settle

    NEWARK, N.J. — A federal judge in New Jersey has dismissed with prejudice a suit brought by homeowners against their homeowners insurer and a shingle manufacturer related to claims that the homeowners’ roof was damaged by a hailstorm and by defective shingles after the parties notified the court that the matter had been “amicably resolved.”

  • October 08, 2025

    Building Designer Dismissed From Latch Defect Insurance Suit

    FORT MYERS, Fla. — A federal judge in Florida on Oct. 7 granted subrogee insurers’ stipulation of dismissal to dismiss the designer of an Amazon sorting center in Fort Myers from a suit the insurers brought against the designer and others alleging that defects in the HVAC units caused damage to the building during Hurricane Ian.

  • October 08, 2025

    Panel Refuses To Review Trial Court’s Reinstatement Of Insurer’s Subrogation Case

    SAN ANTONIO — The Texas Fourth District Court of Appeals on Oct. 8 denied a homeowners insurer’s petition for a writ of mandamus in a subrogation suit stemming from a roofing contractor’s defective work, refusing to review a trial court’s decision to set aside a default judgment and final judgment by default entered against the roofing contractor.

  • October 06, 2025

    Judge Clarifies Order Granting Homebuilder’s, Contractor’s Attorney Fees Motions

    ORLANDO, Fla. — A federal judge in Florida on Oct. 3 granted a homebuilder’s motion to clarify an order that adopted a magistrate judge’s report and recommendation granting the homebuilder’s and general contractor’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, clarifying the deadline for the parties to move for determination of amounts owed.

  • October 03, 2025

    Grain Production Firm Seeks Amended Judgment As To Coverage For Defective Bins

    INDIANAPOLIS — A grain production firm moved to alter or amend a partial summary judgment order in favor of a grain equipment company’s insurer in which a federal judge in Indiana held that some of the claimed losses for the repair and replacement of leaky grain storage bins related to a contractual dispute rather than to coverage liability; the grain production firm argues “that unintentional, defective workmanship constitutes an ‘occurrence’ under Indiana law.”

  • October 01, 2025

    Judge: Insurer Properly Asserted Collusion In Case Brought After Defective Work

    DENVER — A federal judge in Colorado granted an insurer’s motion for summary judgment of a townhome management company, as subrogee for a contractor’s complaint against it for insurance bad faith regarding the coverage of an underlying action the company brought against a contractor for alleged defective construction work in repairing the townhome community’s buildings’ roofs, gutters and siding; the judge found that the facts establish that a Nunn agreement between the company and the contractor was the result of collusion.

  • October 01, 2025

    Insurer Argues 7th Circuit Should Affirm Judgment, Find Exclusion Applies

    CHICAGO — An insurer asked the Seventh Circuit U.S. Court of Appeals to affirm a lower court’s grant of judgment on the pleadings to the insurer in its suit seeking a declaration that it has no duty to defend or indemnify a roofing contractor in an underlying suit alleging that the contractor’s negligent repair work contributed to the collapse of a building’s façade,  which killed two people, arguing that a Prior Work Exclusion applies to bar coverage for the underlying action.

  • September 29, 2025

    Judge Finds Policy Exclusion Preempts Duty To Defend Property Damage Suit

    RIVERSIDE, Calif. — A federal judge in California granted a commercial general liability insurer’s motion to dismiss a subcontractor’s claims against it, finding that a policy exclusion preempted the insurer’s duty to defend a cross-claim in an underlying dispute over property damage during a construction project.

  • September 29, 2025

    Judge Rules For Final Insurer In Bad Faith Suit Arising From Construction Defects

    DENVER — A federal judge in Colorado granted the last remaining defendant insurer’s motion for summary judgment in a  plaintiff insurer’s breach of contract and bad faith lawsuit seeking recovery of the defense and settlement costs that it paid on behalf of its general contractor insured in an underlying construction defects lawsuit but denied the defendant insurer’s request for attorney fees because the lawsuit was not frivolous.

  • September 26, 2025

    Builder Appeals Judge’s Finding Of No Policy Coverage Of Arbitration Award

    HOUSTON — A homebuilder filed a notice in federal court in Texas on Sept. 25 that it was appealing to the Fifth Circuit U.S. Court of Appeals a judge’s order ruling granting summary judgment in favor of the builder’s commercial liability insurer in its suit seeking indemnification for a $213,000 arbitration award for damages caused by construction defects in a home it built; the judge had found that no coverage existed under the policy.

  • September 18, 2025

    Fla. Company’s Bad Faith Claim Dismissed, Breach Of Contract Claim Continues

    TAMPA, Fla. — A federal judge in Florida granted in part and denied in part a commercial general liability insurer’s motion to dismiss a concrete paver company’s complaint against it for not defending it in an arbitration regarding defective pavers, finding that the concrete paver’s breach of contract claim was not premature but that its bad faith claim was premature because a determination of coverage in the underlying action has not been made.

  • September 18, 2025

    Settlement Requires Contractor To Dismiss Cross-Claims In Coverage Dispute

    LOUISVILLE, Ky. — A federal judge in Kentucky granted an insurer’s motion for summary judgment on a subcontractor’s cross-claims against it, finding that the subcontractor was to release its counterclaims as part of a global settlement entered into by the insurer, subcontractor and others involved in this and other legal disputes regarding work done during the construction of an off-campus student housing project. 

  • September 18, 2025

    Weather Exclusion Precludes Complaint To Enforce Coblentz Agreement With Insurer

    FORT LAUDERDALE, Fla. — A federal judge in Florida granted an insurer’s motion to dismiss a homeowner’s complaint to enforce a Coblentz agreement the homeowner entered into with a roofing company to resolve claims that arose after rain damaged the homeowner’s house while the company was replacing part of her roof, finding that a weather-related exclusion precluded coverage under the roofing company’s policy.

  • September 15, 2025

    Judge Denies Dismissal Of Water Incursion Coverage Suit

    RIVERSIDE, Calif. — A federal judge in California denied an insurer’s motion to dismiss a general contractor’s complaint against it for breach of contract for denying the contractor’s claims for coverage and defense in homeowners’ underlying suit against it after their home incurred water intrusion, finding that the damage occurred within the policy period and that no exclusions precluded coverage.

  • September 15, 2025

    Judge Grants Default Judgment In Insurer’s Suit Over Construction Coverage

    HONOLULU — A federal judge in Hawaii issued an order granting an insurer’s motion for default judgment in its declaratory action against a contractor, finding that the insurer had no obligation to defend or indemnify the contractor because there was no coverage under the policy.

  • 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.