Lexington Sued Over Negotiation Of $42M Defect Deal

Law360, New York (July 16, 2013, 3:15 PM ET) -- Lexington Insurance Co. has been accused of shirking its duties to pay part of a $42 million settlement resolving claims that a developer and general contractor it insured damaged a Colorado condominium project, according to a suit removed to federal court Friday.

The Blue Sky Condominium Homeowners' Association Inc. said in its June 12 state court complaint that it settled an underlying construction defect suit in February against the two Lexington insureds over widespread property damage at the 408-unit development.

Blue Sky is alleging that Lexington...
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