Insurer Can't Shake Contractor's Building Defect Suit

Law360, New York (December 12, 2011, 3:17 PM EST) -- A federal judge in Washington state ruled Friday that Virginia Surety Co. Inc. wrongfully denied a contractor coverage for alleged construction defects at a mixed-use real estate project based on a fungus exclusion, but reserved judgment on the remaining reasons for denial.

In mostly denying both parties' motions for summary judgment, U.S. District Judge Ricardo S. Martinez found that Ledcor Industries Inc. had failed to definitively prove that Virginia Surety had acted in bad faith in invoking “damage to your work” and progressive loss exclusions to...
To view the full article, register now.