4th Circ. Cements Insurer's Win in $9M Building Defects Suit

By Shane Dilworth (October 14, 2021, 3:49 PM EDT) -- An excess insurer did not act in bad faith when refusing coverage for a $9 million judgment against a defunct contractor accused of building defects, the Fourth Circuit said, upholding a ruling that found the policyholder would never have to pay that amount out of pocket.

The Fourth Circuit said Mt. Hawley Insurance Co. did not act in bad faith when it refused to cover a judgment against a defunct contractor in a construction defect dispute. (AP Photo/Julio Cortez) ContraVest Construction Co. and affiliate ContraVest Inc. dissolved in 2007 and 2011, respectively, and therefore could not have suffered damages based on...

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