Mealey's Construction Defects Insurance

  • June 19, 2026

    Judge: Insurer Not Obliged To Join In Developer’s Defect Settlement Mediation

    SAN FRANCISCO — A federal judge in California granted an excess insurer’s motion for summary judgment in a developer’s breach of contract case against it, finding that the insurer did not breach the insurance contract by not participating in mediation proceedings the developer conducted with homeowners who reported construction defects because there was no suit to defend against.

  • June 19, 2026

    Judge Dismisses Coverage Case After Construction Manager, Insurers Settle

    NEW YORK — A federal judge in New York dismissed a construction manager’s case against a subcontractor’s insurers seeking coverage for the faulty work allegedly done by the subcontractor after being notified that the construction manager and the insurers had settled all claims in the case.

  • June 19, 2026

    Panel: Failure To Notify Insurer Precludes Coverage For Construction Defect Suit

    SANTA ANA, Calif. — A California appellate panel held that a developer could not recover against an insurer for settlements it entered into in a construction defect lawsuit because the insurer had not been provided notice of the suit until after the developer had entered into the settlements, affirming the judgment entered in favor of the insurer.

  • June 19, 2026

    Insurer Urges 10th Circuit To Affirm Collusion Finding In Defect Coverage Case

    DENVER — A contractor’s insurer in an appellee brief urges the 10th Circuit U.S. Court of Appeals to affirm a lower court’s grant of summary judgment in its favor in a townhome management company’s suit against the insurer alleging bad faith, arguing that the Nunn agreement between the company and the contractor to settle an underlying action was the result of collusion and does not require a jury trial to determine its enforceability.

  • June 19, 2026

    Judge Dismisses Insurers’ Coverage Action Over Construction Defects

    MIAMI — A federal judge in Florida granted a motion to dismiss or abstain filed by a contractor and joined by a subcontractor in a case brought against them by the contractor’s insurers seeking a declaration that the insurers owed no coverage for an underlying suit over alleged construction defects, holding that the Ameritas Variable Life Insurance Company v. Roach factors favored abstention because the issues are better addressed in a state court case addressing the same issues.

  • June 19, 2026

    Contractor: 9th Circuit Should Affirm That Claim For Rescission Is Time-Barred

    SAN FRANCISCO — In an answering brief filed in the Ninth Circuit U.S. Court of Appeals, a general contractor and the man who hired the contractor argue that the court should affirm a lower court’s grant of summary judgment in their favor because the plaintiff insurer did not file its action for rescission within four years of certain representations becoming false.

  • June 19, 2026

    Judge Finds Contractor’s Material Misrepresentations Precluded Coverage

    LOS ANGELES — A federal judge in California found that because a contractor made material misrepresentations in his insurance application, an insurer had no obligation to pay a portion of the contractor’s defense or the settlement the contractor reached in an underlying case regarding the contractor’s allegedly faulty work.

  • June 19, 2026

    Construction Firm: Judge Wrong To Apply Choice-Of-Law Provision In Coverage Case

    BOSTON — In a reply brief filed in Massachusetts federal court, a construction management firm says that a judge should reconsider her ruling dismissing its statutory claims against a subcontractor’s default insurer, arguing that the judge’s finding that the choice-of-law provision in the policy allows the application of New York law contradicts a provision of Massachusetts law.

  • June 19, 2026

    Judge Allows Coverage Action Over Allegedly Defective Stucco Work To Continue

    NEW YORK — A federal judge in New York denied a subcontractor’s motion to dismiss its insurer’s action seeking a declaration that the insurer owes no coverage for an underlying action stemming from the subcontractor’s allegedly defective stucco work, holding that the subcontractor’s attempt to invoke laches at this stage failed because it rests on evidence that is not properly before the court.

  • June 18, 2026

    Insurer Sues For Damage Stemming From Water Leaking From HVAC Drain Line

    NEW YORK — An insurer, as subrogee of the owners of property in New York, filed an amended complaint in New York federal court against an air conditioning company and the company that acquired its business, alleging that a water leak from a condensation drain line the company had serviced caused severe damage to the property.

  • June 18, 2026

    Insurer Seeks Return Of Funds Spent Defending Interior Designer In Underlying Negligence Suit

    LOS ANGELES — An insurer filed a motion for partial summary judgment in California federal court, arguing it is entitled to reimbursement for funds it spent defending an interior designer in an underlying action brought against the designer for negligence because the designer’s allegedly improper selection of materials that allegedly resulted in property damage did not qualify as an accident under the policy.

  • June 18, 2026

    Judge: Insurer’s Policies Do Not Cover Damage Caused By Prior Contractor

    SAN FRANCISCO — A federal judge in California dismissed amended complaints filed by a contractor’s excess insurers against the contractor’s primary and excess insurer, finding that the primary and excess insurer’s policies did not cover defective work done by a prior contractor that the contractor was hired to remediate.

  • June 17, 2026

    Developers Seek To Amend Judgment In Defects Coverage Action

    LOS ANGELES — After a federal judge in California granted final judgment in favor of developers who filed suit seeking insurance coverage for construction defects, the developers are asking the judge to add the amount of prejudgment interest to the judgment.

  • June 15, 2026

    Judge Adopts R&R Dismissing Subcontractor’s Suit Over Remediation Costs

    BUFFALO, N.Y. — A federal judge in New York adopted a magistrate judge’s report and recommendation dismissing a subcontractor’s suit against a contractor and its insurer seeking to recoup the costs of remediating water intrusion at a building under construction.

  • June 15, 2026

    Insurers Seek Rehearing In Dispute Over Coverage For Fire During Renovation

    CINCINNATI — Two insurers are seeking rehearing en banc after a split panel of the Sixth Circuit U.S. Court of Appeals held that they owed a property owner coverage for a fire that burned down a building during renovations because the property owner could not have complied with the policy’s requirement that a fence be built around the entirety of the property during renovations, arguing that the majority’s finding that an insurer must prove it was prejudiced by its insured’s noncompliance with a preloss condition of coverage conflicts with circuit precedent.

  • June 12, 2026

    Judge Grants Joint Motion To Dismiss Motions To Enforce Settlement Over Faulty Work

    NEW ORLEANS — A federal judge in Louisiana granted a joint motion to dismiss a subcontractor and insurer’s motions  to enforce a settlement after the parties notified the judge that they had amicably resolved their differences in a case brought by the insurer as subrogee for a general contractor seeking damages the insurer alleged were caused by the subcontractor’s faulty workmanship.

  • May 22, 2026

    Judge Dismisses Action After Property Owner, Insurer Settle Over Roof Damage

    DAYTON, Ohio — A federal judge in Ohio issued an order of dismissal in a case brought by a company that owns a building in Dayton, Ohio, against its insurer after being notified that the parties settled the case seeking coverage for damage caused by storms; the judge had earlier issued a decision and entry overruling the insurer’s motion for summary judgment, finding that there was a dispute about whether the storm was the sole cause of the damage or whether the improper application of the roof’s liquid-applied roof membrane (LARM) coating and deterioration of the coating at least contributed to the damage.

  • May 22, 2026

    Insurer Argues Judge Should Not Reconsider Dismissing Construction Firm’s Claims

    BOSTON — A subcontractor default insurer argues that a Massachusetts federal judge shouldn’t reconsider her ruling dismissing a construction management firm’s statutory claim against the insurer, stating that the firm hasn’t met any of the exceptions for a motion for reconsideration.

  • May 22, 2026

    Judge Dismisses Declaratory Judgment Claim Over Coverage For Faulty Tile Work

    PHILADELPHIA — A federal judge in Pennsylvania dismissed a property owner’s declaratory judgment claim against its builders’ risk insurer over coverage for a subcontractor’s faulty tile installation, finding the claim duplicative of the property owner’s breach of contract claim; the case will continue on the property owner’s bad faith and breach of contract claims.

  • May 22, 2026

    Subcontractor Seeks To Dismiss General Contractor’s Negligence Claim

    FORT MYERS, Fla. — A subcontractor moved in Florida federal court to dismiss a negligence claim a general contractor brought against it in a third-party complaint regarding damage from roofing repairs the subcontractor performed; the third-party complaint is part of a claims dispute suit the general contractor filed against its commercial general liability insurer over coverage for the roof damage.

  • May 22, 2026

    Contractor’s Insurer: Court Should Find Subcontractor’s Insurer Owed Defense Costs

    SAN FRANCISCO — A general contractor’s insurer urged the Ninth Circuit U.S. Court of Appeals to reverse a lower court’s judgment in favor of a subcontractor’s insurer, arguing that because the general contractor is an additional insured under the subcontractor’s policy, the subcontractor’s insurer had a duty to defend the contractor in an underlying suit against the contractor for damages allegedly caused by the subcontractor’s work.

  • May 22, 2026

    Construction Manager: Lower Court Misinterpreted Course Of Construction Exclusion

    SAN FRANCISCO — A construction manager says that the Ninth Circuit U.S. Court of Appeals should reverse a lower court judge’s order granting its insurers’ motion for summary judgment, arguing that the judge misinterpreted the meaning of the phrase “during the course of construction” in its policy’s course of construction exclusion (COCE) when the judge concluded that the insurers owed no duty to defend the construction manager in an underlying case regarding issues with the laying of concrete flooring.

  • May 22, 2026

    Subcontractor Seeks Enforcement Of Settlement With Insurer Over Faulty Workmanship

    NEW ORLEANS — A subcontractor asked a federal judge in Louisiana to enforce a settlement agreement between the subcontractor and the insurer that sued it as subrogee for a general contractor for damages the insurer alleged were caused by the subcontractor’s faulty workmanship; the subcontractor said the parties could not agree on certain provisions of the $499,000 settlement.

  • May 21, 2026

    Contractor Argues Allegations Give Rise To Potential Coverage Of Underlying Case

    ORLANDO, Fla. — A general contractor argues that allegations in an underlying action over work done on an apartment building potentially give rise to coverage under policies issued by a commercial general liability insurer to the apartment building owner, urging a federal court in Florida to deny the insurer’s renewed motion for summary judgment.

  • May 21, 2026

    Insurer, Construction Company File Stipulation Of Dismissal After Settlement

    BOISE, Idaho — After reaching a settlement in February following a judge’s dismissal of bad faith counterclaims filed by a construction company and seller of property, the parties to a coverage dispute over fire damage that occurred after a construction worker discarded oil-soaked rags filed a stipulation of dismissal in Idaho federal court.