Ore. Defect Coverage Ruling Closes Loophole For Insurers

By Jeff Sistrunk (September 23, 2016, 7:21 PM EDT) -- The Oregon Supreme Court refused Thursday to allow an insurance company to second-guess a jury's finding limiting a policyholder's liability for construction defect damages, a decision experts say closes a loophole for carriers to get a second bite at the apple once the issue of liability has been decided in a case.

In the case, American Family Mutual Insurance Co. had argued that for insurance coverage purposes, the nature and extent of policyholder Sideco Inc.'s liability couldn't be determined based on the jury verdict in underlying construction defect litigation. The carrier noted that the verdict didn't indicate what portion of the...

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