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Mealey's Construction Defects Insurance

  • 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.

  • 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.

  • December 17, 2025

    Current Owner Didn’t Waive Subrogation Rights Under Construction Agreement

    BOISE, Idaho — A federal judge denied a general 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, finding that the current owner did not waive its subrogation rights under the construction agreement.

  • December 15, 2025

    9th Circuit: Tract Housing Exclusion Precludes Coverage For Faulty Work Dispute

    SEATTLE — A Ninth Circuit U.S. Court of Appeals affirmed a lower court’s grant of an insurer’s motion for summary judgment, agreeing with the lower court that coverage for a development company from claims of faulty work brought by a group of homeowners is barred by a policy exclusion related to the construction of tract housing.

  • December 11, 2025

    Hard Rock Hotel Collapse Coverage Dispute Dismissed After Settlement Reached

    NEW ORLEANS — A federal judge in Louisiana issued an order dismissing a property owner’s breach of contract lawsuit against builders risk insurers seeking additional insured coverage for its $89,877,694 in losses arising from the aftermath of the partial collapse of a Hard Rock Hotel project in New Orleans after being informed the parties reached a settlement.

  • December 10, 2025

    Stipulation Of Dismissal Granted In Coverage Dispute Over Defective Stonework

    ST. LOUIS — A federal judge in Missouri on Dec. 9 granted a joint stipulation of dismissal filed by an insurer, construction manager and homeowners in a case brought by the construction manager’s insurer seeking a declaration that it owed no duty to its insured in an underlying action against the construction manager for events arising out of the construction of the homeowners’ house.

  • December 10, 2025

    Texas High Court Will Not Review Court’s Reinstatement Of Insurer’s Subrogation Suit

    AUSTIN, Texas— The Texas Supreme Court 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 disturb a trial court’s decision to set aside a default judgment and final judgment by default entered against the roofing contractor.

  • December 10, 2025

    Townhome Management Appeals Finding Of Collusion In Case Over Defect Coverage

    DENVER — A townhome management company, as subrogee for a contractor, appealed to the 10th Circuit U.S. Court of Appeals a Colorado federal judge’s grant of summary judgment in favor of an insurer in the management company’s case against the insurer for insurance bad faith regarding the coverage of an underlying action the company brought against the contractor for alleged defective construction work; the judge found that the facts established that a Nunn agreement between the company and the contractor was the result of collusion.

  • December 10, 2025

    Panel Directs Lower Court To Order Appraisal In Dispute Over Reconstruction Costs

    HOUSTON — A panel of the Texas First Court of Appeals vacated a trial court’s denial of a builders risk insurer’s motion to compel appraisal in a coverage dispute over the cost of reconstruction of a home damaged by fire and directed the lower court to order the parties to appraisal after determining that the insurer did not waive its right to demand appraisal.

  • December 09, 2025

    Judge: Subcontractor Judicially Estopped After Conflicting Previous Arguments

    OKLAHOMA CITY — A federal judge in Oklahoma granted the motion to limit asset damages filed by a sub-subcontractor and its insurer in a third-party complaint filed by a subcontractor in a case brought after the discovery of construction defects.  The judge found that the subcontractor was judicially estopped because it brought arguments for the first time that were inconsistent with its position for the more than a decade the case has been working its way through the court system.

  • December 09, 2025

    Insurer Waived Right To Object To Insureds’ Civil Remedy Notice, Florida Panel Says

    ST. PETERSBURG, Fla. — A trial court erred in granting summary judgment in favor of a homeowners insurer in a bad faith suit stemming from the insureds’ claim for water and mold damage in their home because the insurer waived its right to object to the insureds’ civil remedy notice (CRN) by failing to raise an objection to the CRN when it responded to the CRN, a Florida appellate court said.

  • December 01, 2025

    Defective Construction Exclusion Does Not Bar Coverage For Water, Mold Damages

    SAN FRANCISCO — A California federal judge granted summary judgment in favor of insured homeowners on a breach of contract claim after determining that an all-risk policy provides coverage for rainwater intrusion and additional living expenses incurred as a result of mold contamination in the insureds’ home because rainwater, a covered loss, rather than defective construction, an excluded cause of loss, was the “efficient proximate cause” of the insureds’ loss.