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Mealey's Construction Defects Insurance

  • January 23, 2026

    Insurer Files New Amended Complaint Against Parties To Construction Dispute

    ORLANDO, Fla. — After its first amended complaint against an apartment building owner, general contractor and several subcontractors was dismissed for a lack of clarity, an insurer filed a second amended complaint, bringing specific claims against each, arguing that it owed none of the defendants a duty to defend or indemnify in an underlying action stemming from allegedly faulty workmanship.

  • January 23, 2026

    Judge Dismisses Case After Settlement Reached in Microtunneling Defense Dispute

    SEATTLE — A federal judge in Washington granted a subcontractor and its insurer’s stipulation and proposed order of dismissal after the parties had notified the court that they had reached a settlement in a case brought by the subcontractor alleging that the insurer failed to defend it against a counterclaim in an underlying suit arising out of the subcontractor’s microtunneling work for a water project in Seattle.

  • January 23, 2026

    Magistrate Says Insurer’s Subrogation Claim Against Contractor Should Proceed

    AUSTIN, Texas — A federal magistrate judge in Texas recommended that a district court deny a construction company’s motion for judgment on the pleadings in a case its insurer brought against it seeking to recover attorney fees it paid in defending subcontractors in an arbitration regarding allegedly negligent hotel designs and construction, finding that the insurer exclusively paid defense cost claims.

  • January 23, 2026

    Concrete Paver Company, Insurer Dispute Whether Insurer Owed Duty To Defend

    TAMPA, Fla. — A concrete paver company and a commercial general liability insurer filed replies to their cross-motions for summary judgment in an action brought by the concrete paver alleging that the insurer breached their contract by not defending it in an arbitration regarding defective pavers; the company argues that “the duty to defend applies so long as there is any potential for coverage,” while the insurer argues that there was no “occurrence” as required to trigger coverage.

  • January 23, 2026

    Pet Rescue Company Seeks Summary Judgment In Suit Over Faulty Plumbing Coverage

    SEATTLE — A pet rescue company filed a motion for summary judgment in federal court in Washington in a case it brought against its plumber’s insurers, seeking garnishment of the plumber’s policies to cover damages caused by the plumber’s faulty work.

  • January 22, 2026

    Contractor, Subcontractor Appeal Finding Insurer Owed No Duty To Indemnify

    PENSACOLA, Fla. — A contractor and subcontractor appealed to the 11th Circuit U.S. Court of Appeals a federal judge in Florida’s order finding that the subcontractor’s insurer owed no duty to indemnify the subcontractor or the contractor that hired it for damages owed after the U.S. Navy found defects in renovations the contractor, subcontractor and other subcontractors did on two buildings at the naval air station in Pensacola.

  • January 21, 2026

    Grain Production Firm Appeals Judgment Order In Defective Bin Coverage Dispute

    INDIANAPOLIS — On Jan. 20, a grain production firm appealed to the Seventh Circuit U.S. Court of Appeals a federal judge in Indiana’s order vacating trial and entering final judgment in a case brought by a grain equipment company’s insurer against the grain equipment company and grain production firm regarding losses for the repair and replacement of leaky grain storage bins.

  • January 20, 2026

    Insurer: Judge Should Dismiss Subcontractor’s Remaining Claims

    LAS VEGAS — After a federal judge in Nevada granted partial summary judgment in favor of an insurer in a subcontractor’s action against it because the construction defect-related claims were not covered because the subcontractor was not an additional insured under the policy, the insurer filed a supplemental brief arguing that the remaining claims fail for the same reason.

  • January 20, 2026

    Homebuilder Argues Judge Wrong To Find No Coverage For Arbitration Award

    NEW ORLEANS — In its opening brief in the Fifth Circuit U.S. Court of Appeals, a homebuilder argues that a federal judge in Texas was wrong to grant summary judgment in favor of the builder’s commercial liability insurer in its suit seeking indemnification for an arbitration award for damages caused by construction defects in a home it built; it argues that the lower court abused its discretion in finding that no coverage existed under the policy.

  • January 16, 2026

    Homeowners: 9th Circuit Broke Precedent Finding No Coverage For Faulty Work

    SEATTLE — A group of homeowners filed a petition for rehearing and rehearing en banc on Jan. 15 in the Ninth Circuit U.S. Court of Appeals, arguing that a Ninth Circuit panel broke with precedent in finding that coverage for a development company from claims of faulty work brought by the homeowners is barred by a policy exclusion related to the construction of tract housing.

  • January 15, 2026

    Subcontractor: Court Wrong To Prevent Recovery From Sub-subcontractor, Insurer

    OKLAHOMA CITY — In a reply brief filed Jan. 14, a subcontractor argued that a federal judge in Oklahoma should reconsider granting a motion to limit asserted damages filed by a sub-subcontractor and its insurer in a third-party complaint brought by the subcontractor in a construction defects case; the subcontractor argued that it should not be judicially estopped from seeking recovery from the sub-subcontractor or its insurer.

  • January 15, 2026

    Judge: Excess Insurer Owes Coverage For Fire Damage; Exclusion Must Be Stricken

    NEW YORK — After a bench trial, a federal judge in New York issued an opinion and order finding that an excess insurer owed coverage to a plumbing company for claims stemming from a fire that occurred in a New York apartment building the plumbing company was working on, finding that the evidence at trial showed that there was a mutual mistake between the parties and illusory insurance coverage.

  • January 13, 2026

    Insureds Appeal Finding That No Defense Owed For Faulty Power Pole Installation

    LOS ANGELES — A contractor and a subcontractor separately appealed judgment against them to the Ninth Circuit U.S. Court of Appeals after a federal judge in California found that an insurer did not owe a duty to defend or indemnify the subcontractor in an underlying suit brought by the contractor to recover costs and expenses incurred in the inspection and remediation of nonconforming installations of power pole anchors and guy wires by the subcontractor.

  • January 12, 2026

    Condominium Association Dismisses Appeal Of Ruling Over Coblentz Agreement

    ATLANTA — A condominium association on Jan. 11 voluntarily dismissed its appeal to the 11th Circuit U.S. Court of Appeals of a Florida judge’s order granting summary judgment to an insurer sued by a condominium association, an assignee for an insured general contractor, to collect funds agreed to under a Coblentz settlement in an underlying suit stemming from defects in the construction of a condominium building, as well as the judge’s order denying the condominium association’s motion for reconsideration.

  • January 08, 2026

    Judge: State Court Better Suited To Address Disputes Underlying Coverage Case

    CHATTANOOGA, Tenn. — A federal judge in Tennessee granted a construction company’s motion to dismiss its insurer’s action against it seeking a declaration that it owed no duty to defend or indemnify it in an underlying action alleging that the construction company was negligent in its action, determining not to exercise jurisdiction over the action.

  • January 08, 2026

    Judge Says Jury Must Determine Whether Exclusion Applies To Bar Defect Coverage

    LOS ANGELES — A federal judge in California granted in part and denied in part an insurer’s motion for summary judgment in a case brought against it by a residential lot owner and granted an excess insurer’s motion for summary judgment; the judge found that a policy exclusion may not bar coverage for work a contractor did on the property.

  • January 07, 2026

    COMMENTARY: 2025 Key Insurance Decisions, Trends, & Developments & A Look Ahead To 2026

    By Scott M. Seaman, Pedro E. Hernandez and Jordan W.P. Evans

  • December 23, 2025

    Judge Finds Policy Does Not Cover Extra Expenses After Floods Halt Project

    ST. LOUIS — A federal judge in Missouri granted summary judgment to an insurer in a case brought against it for breach of contract by a construction company, finding that the insurance policy did not cover the extra expenses the company incurred after two floods halted work renovating a bridge.

  • December 19, 2025

    Judge Dismisses Abuse Of Process Claim For Mistakes In Underlying Coverage Action

    LOUISVILLE, Ky. — A federal judge in Kentucky dismissed an insurance underwriter’s motion for abuse of process in a case brought after a construction company’s former attorney filed an underlying coverage action for a repaired roof defect against the wrong entity, finding the attorney and the construction company had no ill intent in making the mistaken filing.

  • December 19, 2025

    Judge: Insurer Owes No Duty To Indemnify Damages From Subcontractor’s Faulty Work

    PENSACOLA, Fla. — A federal judge in Florida found that a subcontractor’s insurer owed no duty to indemnify the subcontractor or the contractor that hired it for damages owed after the U.S. Navy found defects in renovations the contractor, subcontractor and other subcontractors did on two buildings at the navel air station in Pensacola, Fla., agreeing with the insurer that deficiency notices didn’t assert a claim for property damage and an arbitration award didn’t allocate between covered and noncovered damages.

  • December 19, 2025

    Judge Remands Bad Faith, Negligent Misrepresentation Case To State Court

    KANSAS CITY, Kan. — A federal judge in Kansas remanded to state court a construction company owner’s complaint against his commercial liability insurer for alleged bad faith for not defending him in an underlying construction defect action and negligent misrepresentation against the insurer’s employee, finding that the owner adequately stated a claim against the employee and that complete diversity didn’t exist between the parties.

  • December 18, 2025

    Judge Won’t Amend Judgment As To Defective Bin Coverage

    INDIANAPOLIS — A federal judge in Indiana denied a grain production firm’s motion to alter or amend a partial summary judgment order in favor of a grain equipment company’s insurer, again holding 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.

  • December 17, 2025

    Judge Adopts Report, Dismisses Insurer’s Action Against Subcontractor

    JACKSONVILLE, Fla. — On Dec. 16, a federal judge in Florida adopted the report and recommendations of a magistrate judge that an insurer’s action against its insured subcontractor seeking a declaration that it owed no coverage to the subcontractor in an underlying construction-defect lawsuit be dismissed for lack of Article III jurisdiction.

  • December 17, 2025

    Construction Manager Appeals Finding Policy Exclusion Precludes Coverage

    LOS ANGELES — A construction manager appealed to the Ninth Circuit U.S. Court of Appeals a federal judge in California’s order granting an insurance company’s motion for summary judgment in a case the construction manager brought for coverage of an underlying case regarding issues with the laying of concrete flooring; the judge found that a policy exclusion precluded coverage.

  • December 17, 2025

    Property Owner Appeals After Judge Finds Jury Award Over Fire Damage Not Covered

    FORT LAUDERDALE, Fla. — A property owner appealed to the 11th Circuit U.S. Court of Appeals a federal judge in Florida’s order granting an insurer’s motion for summary judgment in the insurance company’s declaratory action against the property owner and the company’s insured contractor; the judge found no coverage for damages awarded by a jury in an underlying case over damage after a fire because the economic damages aren’t covered under the policy.