Calif. Court Reverses State Farm's Win Against Developer

Law360, New York (September 23, 2013, 7:08 PM EDT) -- A California appeals court on Friday nixed State Farm General Insurance Co.'s victory in a coverage battle with a real estate developer over alleged construction defects at two housing developments.

The court reversed a lower court ruling that excused State Farm from defending McMillin Management Services LP and others against a lawsuit claiming that drainage defects damaged homes at the developments in Bakersfield, Calif.

State Farm fought providing coverage to McMillin under a liability policy that it issued to DeLeon Enterprises, which installed rain gutters on...
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