Newsletter RSS

Mealey's Construction Defects Insurance

  • March 19, 2026

    Homeowner’s Case Against Insurer Dismissed For Lack Of Controversy

    ALLENTOWN, Pa. — A federal magistrate judge in Pennsylvania granted a solar panel company’s insurer’s motion to dismiss a case a homeowner brought against the insurer for denying his claim after the solar panel company’s faulty workmanship on the property caused damage, finding that the homeowner failed to allege facts to establish subject matter jurisdiction or establish a controversy.

  • March 19, 2026

    Insurer Argues Appellate Court Should Affirm No Coverage For Homebuilder

    NEW ORLEANS — In its appellee brief in the Fifth Circuit U.S. Court of Appeals, a builder’s insurer argues that a federal judge in Texas was right to find that no coverage existed under a policy the insurer provided the builder in a suit the builder filed against the insurer seeking indemnification for an arbitration award for damages caused by construction defects in a home the builder built; the insurer argues that the alleged defects occurred while the builder owned the property and therefore fell under a policy exclusion.

  • March 19, 2026

    Federal Judge Stays Defect Coverage Case While State Action Continues

    LOS ANGELES — A federal judge in California granted a motion to stay filed by a condominium developer and general contractor in a declaratory judgment case the general contractor’s insurer filed against them over coverage for an arbitration award regarding construction defects, finding that continuing the case would be largely duplicative of a case involving nearly identical insurance policies between the parties.

  • March 19, 2026

    Insurer Objects To Finding That Alleged Damage Fell Under Scope of Coverage

    SAN ANTONIO — An insurer objected to a federal magistrate judge in Texas’ finding that the insurer had not shown that the property damage alleged in an underlying construction defects suit fell outside the scope of coverage.

  • March 19, 2026

    Judge Adopts R&R Allowing Insurer’s Claims Against Contractor To Proceed

    AUSTIN, Texas — A federal judge in Texas issued an order adopting a magistrate judge’s report and recommendation that a construction company’s motion for judgment on the pleadings be denied in a case its insurer brought against it seeking to recover attorney fees the insurer paid in defending subcontractors in an arbitration regarding allegedly negligent hotel designs and construction; the magistrate judge had found that the insurer exclusively paid defense cost claims.

  • March 19, 2026

    Magistrate Judge Finds Course Of Construction Exclusion Bars Coverage

    LOS ANGELES — A federal magistrate judge in California granted insurers’ motion for summary judgment on claims brought against them by an insured subcontractor for not defending or indemnifying it in an underlying construction-defect arbitration because coverage was barred under the policy as the construction project at issue was not completed.

  • March 16, 2026

    Judge Gives Insurer More Time To File Default Motion Against Subcontractor

    ORLANDO, Fla. — After a magistrate judge in Florida denied an insurer’s motion for default judgment against its insured subcontractor because the motion did not address the elements of a declaratory judgment claim, a federal judge granted the insurer an extension of time to file a new motion for default judgment.

  • March 16, 2026

    Ark. Appellate Court Finds Contractor Not Insured Under Subcontractor’s Policy

    LITTLE ROCK, Ark. — An Arkansas Court of Appeals panel affirmed a lower court’s entry of summary judgment in favor of a subcontractor’s insurer, finding that a general contractor was not an additional insured under the policy and, therefore, the insurer owed no duty to defend or indemnify the general contractor in an underlying action for alleged faulty workmanship.

  • March 12, 2026

    Magistrate Judge Chooses To Dismiss Insurer’s Action Against Roofing Company

    MONROE, La. — A federal magistrate judge in Louisiana decided to dismiss rather than stay an insurer’s declaratory judgment action against its insured roofing company pending a final determination in an underlying state action, finding that a stay would have the same practical effect as a dismissal.

  • March 12, 2026

    Subcontractor Appeals Order Preventing It From Seeking Recovery

    OKLAHOMA CITY — After a federal judge in Oklahoma denied a subcontractor’s reconsideration of the judge’s order granting a motion to limit asserted damages filed by a sub-subcontractor and its insurer, the subcontractor who brought the third-party complaint appealed the decision to the 10th Circuit U.S. Court of Appeals.

  • March 11, 2026

    Judge Grants Default, Finds Faulty Construction Occurred Before Policy Period

    EAST ST. LOUIS, Ill. — A federal judge in Illinois granted an insurer’s motion for default judgment against its insured, finding that the insurer doesn’t owe a duty to defend its insured in an underlying case seeking damages in connection with property damage that allegedly stemmed from the insured’s faulty construction work because the alleged damages occurred before the policy period.

  • March 10, 2026

    Judge Denies Cross-Motions For Summary Judgment In Defect Coverage Dispute

    FRESNO, Calif. — A federal judge in California denied cross-motions for summary judgment in an excess insurer’s action against its insured general contractor for reimbursement of funds it paid to settle an underlying construction defect action, finding that the court must first determine whether the insurer adequately reserved its right to seek reimbursement.

  • March 05, 2026

    Judge: Dispute Remains About How Much Subcontractor’s Actions Impacted Damage

    NEW ORLEANS — A federal judge in Louisiana denied a subcontractor’s motion for summary judgment in an action an insurer brought  as subrogee for a general contractor against the subcontractor for damages the insurer alleged were caused by the subcontractor’s faulty workmanship, finding that there remains a genuine dispute as to how much the subcontractor’s actions contributed to damage to property that happened during a period of springtime rain.

  • February 24, 2026

    Insurer Files New Motion For Reconsideration In Water Damage Coverage Dispute

    LOS ANGELES — A general liability insurer filed a new motion asking a federal judge in California to reconsider his grant of summary judgment to developers on their declaratory judgment and breach of contract claims against the insurer after the judge issued docket-only orders striking the insurer’s earlier motions for reconsideration.

  • February 20, 2026

    Judge Lifts Stay In Action Over Coverage Of Underlying Negligence Suit

    LOS ANGELES — A federal judge in California lifted the state in an action brought by an insurer disputing coverage for an underlying negligence suit brought against its interior designer insured; the parties had recently filed a joint status report informing the judge of a settlement in the underling action and an agreement that the stay in the coverage action should be lifted.

  • February 20, 2026

    Judge Finds Insurer Must Defend Paint Contractor In Suit Over Fire Damage

    SAN FRANCISCO — A federal judge in California found that a commercial general liability insurer owed its insured paint contractor a duty to defend and indemnify it in underlying actions stemming from a fire that damaged property in San Francisco because there is “evidence that, at minimum, creates a material dispute of fact as to [the paint contractor’s] role in the fire at the Property.”

  • February 20, 2026

    Settlement Reached After Counterclaims Dismissed In Coverage Dispute Over Fire

    BOISE, Idaho — The parties to a coverage dispute over fire damage after a construction worker discarded oil-soaked rags reached a settlement after a federal judge in Idaho granted the insurer’s motions to dismiss bad faith counterclaims filed by the construction company and seller of the property because they did not allege sufficient facts to support the counterclaims.

  • February 20, 2026

    7th Circuit Proceeds With Briefing In Bin Coverage Dispute After Limited Remand

    CHICAGO — The Seventh Circuit U.S. Court of Appeals issued a briefing order after a corrected judgment was entered on remand in a case brought by a grain equipment company’s insurer against the grain equipment company and a grain production firm regarding losses for the repair and replacement of leaky grain storage bins; the lower court had submitted the amended final judgment as requested to fix deficiencies.

  • February 20, 2026

    Judge Strikes Motions For Reconsideration In Water Damage Coverage Dispute

    LOS ANGELES — A federal judge in California issued docket-only orders striking a contractor’s commercial general liability insurer’s motions asking the judge to reconsider his grant of summary judgment to developers on their declaratory judgment and breach of contract claims against the insurer.

  • February 20, 2026

    Insurer Urges 9th Circuit To Affirm Amended Judgment In Damages Coverage Row

    SAN FRANCISCO — In its second brief on cross-appeal, a subcontractor’s insurer argues that the Ninth Circuit U.S. Court of Appeals should affirm a lower court’s amended judgment in its favor, arguing that it did not have a duty to defend the subcontractor in the insurer’s equitable contribution and equitable indemnification suit arising from construction defect-related damages to a hotel the general contractor and subcontractor were constructing.

  • February 20, 2026

    Parties Agree To Dismiss Defendant Insurer From Property Damage Indemnity Suit

    NEW YORK — In federal court in New York, the parties to a condominium building owner’s insurer’s declaratory judgment action filed a stipulation of dismissal of one of the defendant insurers; the building owner’s insurer brought the action seeking a declaration regarding the defense and indemnity of the owner in an underlying suit brought by the owner of an adjacent building after that building was damaged during construction of the condominium building.

  • February 20, 2026

    W.Va. Appellate Court: No Coverage For Work Done By Insured’s Subcontractors

    CHARLESTON, W.Va. — The Intermediate Court of Appeals of West Virginia reversed in part a lower court’s order granting summary judgment to a property owner that brought an action against a contractor’s insurer seeking coverage for alleged faulty workmanship performed by certain subcontractors, finding that the policy did not provide coverage for work done by subcontractors.

  • February 19, 2026

    Judge Finds Issues Of Fact Remain In Suit Over Faulty Plumbing Coverage

    SEATTLE — A federal judge in Washington denied a pet rescue company’s motion for summary judgment 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; the judge found that “[g]enuine issues of fact remain regarding the quantum harm as to covered non-excluded property.”

  • February 19, 2026

    Judge: Insurer Owes Duty To Defend Contractor Under ‘Other Insurance’ Provision

    BOSTON — A federal judge in Massachusetts found that a subcontractor’s insurer owed a duty to defend a contractor in an underlying suit regarding water damage due to alleged faulty workmanship, finding that the subcontractor’s insurer was the primary insurer under the other insurance provision in the contractor's insurance policy.

  • February 18, 2026

    Contractor: Judge Wrong To Find Current Owner Didn’t Waive Subrogation Rights

    BOISE, Idaho — A general contractor asked a federal judge in Idaho to reconsider an order denying the contractor’s motion for summary judgment in a case brought by the insurer of the current owner of an apartment building after a fire-suppression water line froze and burst, arguing that the judge’s interpretation of provisions of the general contractor agreement and application of the economic loss doctrine were in error.