Developer Seeks Coverage For Megachurch Suit

Law360, New York (July 29, 2011, 7:24 PM EDT) -- A California home developer sued U.S. Specialty Insurance Co. in federal court Thursday, seeking coverage for a class action alleging that the company negligently failed to tell homeowners that a megachurch was moving into one of its residential developments.

Corky McMillin Construction Services Inc. alleges that the insurer unlawfully rejected its claim under a directors, officers and private organization liability policy by wrongfully relying on a policy exclusion that precluded coverage for claims that arose out of the insured's “rendering of or failure to render service...
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