Insurer Can't Rebuild Case In Construction Defect Suit

Law360, New York (January 25, 2012, 7:34 PM EST) -- A federal judge in Washington state on Wednesday again rejected Virginia Surety Co. Inc.'s argument that it did not have to cover a contractor in a construction defect suit because it was not a primary insurer, refusing to reconsider the previous ruling.

U.S. District Judge Ricardo S. Martinez had ruled Dec. 9 that Virginia Surety wrongfully denied Ledcor Industries Inc. 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...
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