Insurer Says It Isn't Liable For $3.2M Construction Fixes

Law360 (December 4, 2019, 4:01 PM EST) -- Arch Insurance Co. says it doesn’t need to pay back a construction contractor nearly $3.2 million for fixing allegedly deficient work by its subcontractor on a Boston-area apartment building, according to a Massachusetts federal suit filed Tuesday.

Because the New Jersey-based insurer wasn’t given a chance to participate in the remediation process for the subcontractor’s work, it has no obligation to pay back The Graphic Builders LLC for the $3.2 million it incurred, the complaint said. When Graphic Builders decided its subcontractor, RCM Modular Inc., was in default, it was supposed to terminate RCM and allow Arch to intervene according to the terms...

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