Insurers Fail To Pare Construction Defect Coverage Suit

Law360, Washington (January 26, 2012, 7:37 PM EST) -- American International Specialty Lines Insurance Co. and Lexington Insurance Co. lost their attempt Wednesday to partially shut down a suit seeking coverage for allegedly faulty work performed by subcontractors and suppliers for two home construction companies.

McMillin Management Services LP and Corky McMillin Construction Services Inc. sued AISLIC, Lexington and a slew of other insurers in California in November 2010. They allege the insurers have a duty to defend and indemnify them against claims arising out of a construction defect action, which is currently stayed in...
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