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Mealey's Construction Defects Insurance

  • 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

    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, saying 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 that the general contractor and subcontractor were building.

  • 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.

  • February 18, 2026

    Insurers: Judge Should Not Reconsider Finding Subcontractor Not Covered

    LAS VEGAS — Two insurers filed briefs opposing a subcontractor’s motion asking a federal judge in Nevada to reconsider the judge’s grant of summary judgment in favor of one insurer and partial grant of summary judgment in favor of another insurer in the subcontractor’s action against them; both insurers argue that the judge did not err in issuing the order and that the subcontractor’s arguments could have been raised in its opposition to the insurers’ motions for summary judgment.

  • February 17, 2026

    7th Circuit Orders Limited Remand Of Judgment In Defective Bin Coverage Dispute

    CHICAGO — A Seventh Circuit U.S. Court of Appeals judge ordered a limited remand of 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, ordering the lower court to “enter a judgment that fully and correctly implements its decision.”

  • February 17, 2026

    Insurer Files Status Report After Judge Vacates Dismissal Of Coverage Dispute

    LOS ANGELES — After a federal judge in California vacated the dismissal of an insurer’s lawsuit disputing coverage for an underlying negligence suit brought against its interior designer insured, the parties filed a joint status report informing the judge of a settlement in the underlying action and an agreement that the stay in the coverage action should be lifted.

  • February 13, 2026

    Judge Won’t Reconsider Order Preventing Subcontractor From Seeking Recovery

    OKLAHOMA CITY — A federal judge in Oklahoma denied a subcontractor’s motion for reconsideration of the judge’s order 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, finding no grounds warranting reconsideration or amendment.

  • February 13, 2026

    Insurer Argues Damages Calculation In Water Damage Coverage Dispute Was Wrong

    LOS ANGELES — A contractor’s commercial general liability insurer asked a federal judge in California to reconsider the judge’s grant of summary judgment to developers on their declaratory judgment and breach of contract claims against the insurer, arguing that the calculation of damages the judge found the insurer owed to the developers was wrong and that the judge failed to properly address arguments raised in the insurer’s opposition.

  • February 12, 2026

    Judge: Insurer Can File New Amended Third-Party Equitable Subrogation Complaint

    CHICAGO — A federal judge in Illinois granted an insurer leave to file a third amended third-party complaint against another insurer seeking equitable subrogation in a case brought by a developer seeking coverage in an underlying case brought against the developer by a townhome owners association alleging that construction defects resulted in water damage to a residential townhome project; the judge found that the proposed amendments had been properly brought.

  • February 12, 2026

    Magistrate: Exclusions Don’t Bar Coverage For Action Over Subcontractor’s Work

    TAMPA, Fla. — A federal magistrate judge in Florida recommended the court grant in part and deny in part cross-motions for summary judgment filed by an insurer and contractor in a case brought by the insurer seeking a declaration that it did not owe a duty to defend or indemnify its insured subcontractor in an underlying action regarding the subcontractor’s faulty work during a redecking project; the magistrate judge found that policy exclusions did not apply but that the settlement reached in the underlying action was not binding on the insurer.

  • February 06, 2026

    Judge Dismisses Insurer’s Suit Disputing Coverage For Negligence Claims

    LOS ANGELES — A federal judge in California dismissed an insurer’s lawsuit disputing coverage for an underlying negligence suit brought against its interior designer insured; the case had been stayed pending resolution of the underlying case, and the parties failed to issue a status report within the required time.

  • February 06, 2026

    Parties Reach Settlement In HVAC Unit Latch Defect Insurance Suit

    FORT MYERS, Fla. — A federal judge in Florida issued an order dismissing subrogee insurers’ case against the contractor that installed HVAC rooftop units (RTUs) at an Amazon sorting center, as well as others involved in the manufacturing and delivery of the RTUs after the parties reached a settlement; the complaint alleged that defects in the HVAC units caused damage to the building during Hurricane Ian.

  • February 05, 2026

    Judge Grants Dismissal Of Coverage Dispute Over Construction Defect Suit

    WASHINGTON, D.C. — A federal judge in the District of Columbia issued a minute order granting a commercial general liability insurer’s stipulation of voluntary dismissal of its declaratory lawsuit against condominium developers, contractors and homeowners that sought to determine whether it owes its policyholders a duty to defend or indemnify them from claims of construction defects brought by a group of condominium residents in an underlying state court suit.

  • January 27, 2026

    Contractor’s Insurer Sues For Declaratory Relief From Subcontractors’ Insurers

    LOS ANGELES — A general contractor’s insurer filed an action for declaratory relief and equitable indemnity and/or equitable contribution against subcontractors’ insurers in an underlying action brought by the owner of residential property alleging that construction defects caused damage to the property, arguing that none of the subcontractors’ insurers contributed to the general contractor’s defense as an additional insured under the subcontractors’ policies.

  • 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.