Insurance Co. Off The Hook In $8M Dispute Over Leaky Homes

Law360 (May 7, 2020, 8:19 PM EDT) -- Builders Mutual Insurance doesn't have to cover a roughly $8 million dispute in which its policyholders are accused of selling leaky homes to unsuspecting buyers, a Virginia federal court said Thursday.

Builders Mutual Insurance Co.'s coverage policy with J.L. Albrittain Inc. and Cathedral View Inc. doesn't apply to the claims that the business partners are facing, which center around alleged misrepresentations and shoddy work, U.S. District Judge Leonie M. Brinkema said. Those allegations don't trigger BMIC's duty to defend the companies, and even if they did, they fall under exclusions in their policy, the opinion said.

"Even if defendants had met...

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