Tag: Insurance Claims

Declaratory Judgment Entered Against Architect’s Insurer Finding that Design Flaws were Unrelated and Subject to Separate Liability Limits

Donald A. O’Brien – Hinshaw & Culbertson LLP – September 3, 2014 Dormitory Authority of the State of New York v. Continental Casualty Company, Docket Nos. 13-1671(L), 13-1700(XAP) United States Court of Appeals, Second Circuit (June 23, 2014) The Dormitory Authority of the State of New York (DASNY) contracted with an architectural firm to design… Continue reading Declaratory Judgment Entered Against Architect’s Insurer Finding that Design Flaws were Unrelated and Subject to Separate Liability Limits

Business Risk Exclusions Bar Coverage for Construction Defect Claims

Tred Eyerly – August 25, 2014 The homeowners’ assigned claims against the general contractor’s insurer were barred by business risk exclusions in the CGL policies. W. Heritage Ins. Co. v. Cannon, 2014 U.S. Dist. LEXIS 101382 (E.D. Wash. July 24, 2014). The Cannons contracted with Cook Custom Homes to build their home. Cook never hired a… Continue reading Business Risk Exclusions Bar Coverage for Construction Defect Claims

Duty to Defend Construction Defect Case Triggered by Complaint’s Allegations

Tred Eyerly – Insurance Law Hawaii – August 20, 2014 The subcontractor’s insurer could not escape contributing to defense costs of its insured when coverage was possible based upon the underlying complaint’s allegations. Seneca Ins. Co. v. James River Ins. Co., 2014 U.S. Dist. LEXIS 97156 (D. Ore. July 17, 2014). The underlying action alleged… Continue reading Duty to Defend Construction Defect Case Triggered by Complaint’s Allegations

Insurance Company Denials Based on Water Backup and Overflow Are Not Always Enforceable

Christopher Nahas – August 7, 2014 Many policyholder disputes involve an insurance contract that includes a provision dealing with water damage. While there are various constructions of the water damage provision, the issue of water that backs up or overflows from a sewer or drain arises frequently. Insurance companies will often deny claims based on… Continue reading Insurance Company Denials Based on Water Backup and Overflow Are Not Always Enforceable

Principal Architects on Residential Projects Liable for Construction Defects Outside Their Control; Developers and Owners May Pay the Price

Meredith Jones-McKeown – July 16, 2014 Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP (Cal. Supreme Court., 07/03/2014, S208173) On July 3, 2014, the California Supreme Court decided the much watched case Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP.  The court held that the “principal architect” “owes a duty of care… Continue reading Principal Architects on Residential Projects Liable for Construction Defects Outside Their Control; Developers and Owners May Pay the Price