5th Circ. Adds New Wrinkle To Construction Defect Debate

Law360, New York (February 14, 2014, 7:55 PM EST) -- The Fifth Circuit held Tuesday that a general contractor was not an additional insured for claims that a subcontractor performed faulty work on a condominium project, a controversial ruling that opens another front in the heated debate over construction defect coverage and serves as a cautionary tale for policyholders.

Reversing a district court's holding, the Fifth Circuit ruled that Acceptance Indemnity Insurance Co. had no duty to defend Carl E. Woodward LLC, which touts itself as one of the largest construction firms in the Gulf Coast...
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