By Bibeka Shrestha

Law360, New York (September 07, 2011, 6:14 PM ET) -- Subcontractor MKD Inc. and its insurer Mutual Benefit Insurance on Wednesday settled litigation that Slate Rock Construction Co. brought to win coverage of suits brought over allegedly shoddy construction of three apartment projects in Pennsylvania.

A Pennsylvania federal judge dismissed Mutual Benefit Insurance with prejudice and altered MKD's previous dismissal without prejudice to one with prejudice.

U.S. Magistrate Judge Robert Mitchell also dismissed without prejudice Spodek Insurance — which had provided a certificate of insurance for MKD — and General Accident Insurance Co. of America, which...