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Mealey's Construction Defects Insurance

  • August 26, 2025

    Condo Developer’s Concrete Slab Coverage Suit Dismissed In Wake Of Settlement

    DENVER — A federal judge in Colorado dismissed with prejudice a condominium developer’s suit against its builders risk insurer the same day the parties filed a joint stipulation of dismissal.  The parties in July notified the court that they had reached a settlement in the case, which had been scheduled to go to trial in January 2026 after the 10th Circuit U.S. Court of Appeals in December reversed a $2.54 million jury award in favor of the developer and remanded for a new trial.

  • August 26, 2025

    Insurer’s Action Against Construction Manager, Homeowners Not Time-Barred

    ST. LOUIS — A federal judge in Missouri denied motions to dismiss filed by a construction manager and homeowners in an action brought by the construction manager’s insurer seeking a declaration that the insurer owed no duty to its insured in a complaint brought against the construction manager for events arising out of the construction of the homeowners’ house; the judge found that the insurer’s complaint was not time-barred and that the claim was ripe.

  • August 25, 2025

    Judge Grants Contractor, Homebuilder’s Motion For Attorney Fees

    ORLANDO, Fla. — A federal judge in Florida adopted a magistrate judge’s report and recommendation granting a general contractor and homebuilder’s motions for entitlement to attorney fees following a summary judgment ruling in their favor in a commercial liability insurer’s lawsuit seeking a declaration as to coverage for construction-related damages at a condominium development.

  • August 25, 2025

    Judge Dismisses Contractor’s Coverage Suit After Parties Announce Settlement Reached

    FLORENCE, S.C. — A federal judge in North Carolina dismissed a contractor’s coverage suit stemming from water intrusion and other construction defect issues at a mixed-use development project, noting that the parties have indicated that they have reached a settlement.

  • August 21, 2025

    Insurers Denied Reconsideration Of Summary Judgment For Faulty Work, Water Damage

    NEW YORK — A federal judge in New York denied two insurers’ motions for reconsideration of the denial of their motions for summary judgment in connection with coverage for an underlying suit brought by a developer against a construction manager for allegedly faulty work and water damage to a project in New York, finding one insurer’s motion to be procedurally improper and to fail on the merits and the other’s interpretation of “property” in the Contractors Exclusion to not be the only interpretation of “property” available.

  • August 21, 2025

    Insurer Argues Court Properly Determined Breach Of Contract Action Failed

    PHILADELPHIA — In opposing a homeowner’s motion for reconsideration of a Pennsylvania federal magistrate judge’s dismissal of his amended complaint for damages he was awarded in an underlying suit against an insured contractor, an insurer argues that the magistrate properly determined that the homeowner’s breach of contract cause of action failed and that the homeowner is merely rehashing old arguments.

  • August 19, 2025

    Pollution Exclusion Bars Coverage For Carbon Monoxide Leak, Insurer Says

    JACKSONVILLE, Fla. — An insured is not entitled to defense or indemnity for underlying lawsuits seeking damages caused by carbon monoxide exposure stemming from the faulty installation of tankless hot water heaters because the policy’s total pollution exclusion bars coverage, an insurer asserts in a complaint filed in Florida federal court.

  • August 18, 2025

    Insurer, Property Owner Seek Protective Order In Suit Over Defective Workmanship

    PHOENIX — An excess commercial insurer and an apartment complex owner asked an Arizona federal court to issue a protective order as to discovery in the insurer’s lawsuit seeking a declaration that an underlying $6 million stipulated judgment arising from defective workmanship claims cannot be enforced against it.

  • August 15, 2025

    Judge Determines Duties Among Insurers After HVAC Leak Creates Water Damage

    NEW YORK — A federal judge in New York determined the duties to defend among insurers after a general contractor’s insurer sued subcontractors’ insurers to defend the general contractor in an underlying state court case alleging water damage to an Old Navy store occurred after leaky brass valves were installed during work done on its HVAC system.

  • August 15, 2025

    Insured: 9th Circuit Wrong In Finding No Coverage For Substandard Work Claims

    PASADENA, Calif. — An electrical contractor filed a petition for panel rehearing with the Ninth Circuit U.S. Court of Appeals, arguing that the panel was wrong to find that a commercial general liability insurer owed no coverage for an underlying action alleging that the contractor’s substandard work led to flooding damage to switchgear.

  • August 14, 2025

    Pa. Federal Judge Dismisses Bad Faith Claim In Dust Contamination Coverage Suit

    PHILADELPHIA — A Pennsylvania federal judge on Aug. 13 dismissed a bad faith claim alleged against a homeowners insurer after determining that the insureds, who are seeking coverage for an infiltration of dust in their home, failed to show that the insurer’s denial of coverage based on the policy’s exclusions for pollution and defective workmanship was unreasonable.

  • August 13, 2025

    Insurers’ Motions For Default, Dismissal Against Roofer For Faulty Work Granted

    NEW YORK — A federal judge in New York granted both a limited liability company’s insurer’s motion for default judgment in its third-party subrogation complaint against a roofer and the roofer’s commercial general liability insurer’s motion to dismiss the roofer’s fourth-party complaint against it, finding the roofer had adequate time to retain new counsel after its counsel withdrew and did not retain new counsel, and therefore could not prosecute its claim against its insurer or defend the company’s insurer’s subrogation claim.

  • August 12, 2025

    Cross-Motions For Summary Judgment In Suit Over Faulty Plumbing Coverage Denied

    SEATTLE — A federal judge in Washington denied cross-motions for summary judgment filed in a case brought by a pet rescue company against its plumber’s insurers, seeking garnishment of the plumber’s policies to cover damage caused by the plumber’s faulty work, finding that the evidence the parties provided was not clear enough to determine whether the damage was covered.

  • August 11, 2025

    Judge Remands Case Against Insurer, Roofer, Finds Joinder Appropriate

    MIAMI — A federal judge in Florida remanded a condominium’s case against an insurer and roofer for damages that were discovered after a tropical storm, finding that, while unusual, the condominium association properly alleged that it is entitled to compensation either because the roofer negligently caused damage to the roof or the tropical storm damaged the roof.

  • August 08, 2025

    Judge Reconsiders Use Of Diamond Heights In Finding Insurer Didn’t Waive Consent

    SAN FRANCISCO — A federal judge in California granted an excess insurer’s motion for reconsideration as to the application of Diamond Heights Homeowners Association v. National American Insurance Co. in the judge’s previous decision to deny a housing developer’s motion for partial summary judgment in its case against the excess insurer for breach of contract after the homeowner reported construction defects, agreeing with the insurer that Diamond Heights doesn’t apply.

  • August 08, 2025

    Homeowner Asks Court To Reconsider Dismissal Of Suit Against Contractor’s Insurer

    PHILADELPHIA — A homeowner is asking a federal court in Pennsylvania to reconsider its ruling dismissing his complaint against his contractor’s commercial general liability insurer for damages he was awarded in an underlying suit against the contractor, arguing that the court misapplied the state’s postloss assignment doctrine in determining that he lacked standing to assert a breach of contract claim against the insurer.

  • August 08, 2025

    Judge Finds Company Failed To Show How Subcontractor’s Drawings Caused Its Breach

    SANTA ANA, Calif. — A federal judge dismissed a self-storage design and construction limited liability company’s complaint against a subcontractor’s insurer after the insurer denied coverage for claims brought against the limited liability company by a builder for damages the company alleges were caused by using the subcontractor’s drawings for the project that specified wrong materials and did not properly identify connections between the company’s structural steel and other project components, holding that the company didn’t explain how the subcontractor’s drawings caused the company’s breach of its contract with the builder.

  • August 07, 2025

    4th Circuit Stands By Its Revival Of Breach, Bad Faith Claims In Stucco Coverage Suit

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals has denied a commercial general liability insurer’s motion for rehearing of its ruling reversing the dismissal of a general contractor’s breach of contract and bad faith counterclaims as moot and remanding for the lower court to determine whether some costs incurred by the contractor in addressing damage caused by faulty stucco may be covered under the policy.

  • August 07, 2025

    Paint Damage Was Caused By Faulty Work, No Coverage Owed, 9th Circuit Affirms

    SEATTLE — The Ninth Circuit U.S. Court of Appeals affirmed a Washington federal court’s grant of a homeowners insurer’s motion for summary judgment in an insured’s breach of contract and bad faith lawsuit, agreeing with the lower court that paint damage in a vacation home was caused by uncovered faulty workmanship and not covered vandalism.

  • August 05, 2025

    Builder Seeks Reconsideration Of Ruling For Insurer On Defects Arbitration Award

    HOUSTON — A homebuilder seeks reconsideration of a Texas federal judge’s ruling granting summary judgment in favor of its commercial general liability insurer in the builder’s suit seeking indemnification for a $213,000 arbitration award for damages caused by construction defects in a home it built, arguing that the judge erred in finding that the appraisal process discharged the insurer’s obligations as there was no appraisal or appraisal award in the case.

  • August 05, 2025

    Insured’s Counterclaim In Dispute Over Defective Pool Shells Dismissed

    AUSTIN, Texas — A Texas federal judge adopted a magistrate judge’s recommendation to dismiss an insured’s counterclaim for promissory estoppel in a dispute over coverage for defective pool shells damaged by a chemical reaction between alkalis in the cement and silica, overruling the insured’s objection that the magistrate judge misapplied the legal standard governing promissory estoppel claims.

  • August 04, 2025

    Professional Liability Insurer Announces Judgment Satisfied In Mold Coverage Dispute

    LAS VEGAS — A contractor’s professional and indemnity liability insurer filed a notice in a federal court in Nevada indicating that a broker’s professional liability insurer has satisfied a judgment in its favor in a coverage dispute arising from mold and moisture-related damage.

  • August 01, 2025

    General Contractor’s Insurer Appeals Amended Judgment In Row Over Damages Coverage

    SANTA ANA, Calif. — A commercial general liability insurer for a construction company filed a notice of appeal of a federal court in California’s judgment finding that another of the company’s insurers had no duty to defend the company as an additional insured in a dispute over damages to a Hard Rock Hotel location because the terms of the original contract included no requirements to maintain insurance beyond the final payment date for the project.

  • August 01, 2025

    Condominium Association Appeals Ruling Finding Coblentz Agreement Unreasonable

    JACKSONVILLE, Fla. — A condominium association has appealed to the 11th Circuit U.S. Court of Appeals a Florida federal judge’s order granting summary judgment to an insurer sued by a condominium association, as 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.

  • August 01, 2025

    9th Circuit Issues Mandate After Denying Reconsideration Of Defects Coverage Suit

    SEATTLE — A Ninth Circuit U.S. Court of Appeals panel issued a mandate in a case where it held a lower federal court did not abuse its discretion by dismissing homeowners’ coverage dispute stemming from a defects lawsuit over the construction of homes, finding that four out of the five factors in Hernandez v. City of El Monte favor dismissal for failure to prosecute or comply with a court order; it issued the mandate after denying the homeowners’ petition for rehearing.