Travelers Freed From Defending Centex In Defect Suits

Law360, New York (April 4, 2011, 9:54 PM EDT) -- A California federal judge ruled Friday that Travelers Property Casualty Co. of America was excused from defending Centex Homes in two construction defect lawsuits because the builder refused the insurer’s choice of counsel.

Judge Charles Breyer of the U.S. District Court for the Northern District of California granted part of Travelers' motion for summary judgment, saying that Centex breached its duty to cooperate with the insurer and had substantially prejudiced Travelers' ability to provide a defense under the policy.

Travelers’ complaint, filed in June, alleged that...
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