Insurers Can't Shake Construction Defect Coverage Row

Law360, New York (July 7, 2011, 5:42 PM EDT) -- A California federal judge on Tuesday rejected American Safety Indemnity Co.'s and Arch Specialty Insurance Co.'s bids to nix a suit seeking coverage for allegedly faulty work performed by subcontractors and suppliers for three home construction companies.

U.S. District Judge Roger T. Benitez ruled that plaintiffs McMillin Management Services LP, Corky McMillin Construction Services Inc. and Imperial Valley Residential Builders LP sufficiently alleged facts showing that the they were additional insureds under comprehensive general liability insurance policies that the insurers issued to the project's subcontractors and...
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