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Mealey's Construction Defects Insurance

  • October 06, 2025

    Judge Clarifies Order Granting Homebuilder’s, Contractor’s Attorney Fees Motions

    ORLANDO, Fla. — A federal judge in Florida on Oct. 3 granted a homebuilder’s motion to clarify an order that adopted a magistrate judge’s report and recommendation granting the homebuilder’s and general contractor’s motions for entitlement to attorney fees following a summary judgment ruling in their favor in a commercial liability insurer’s lawsuit seeking a declaration as to coverage for construction-related damages at a condominium development, clarifying the deadline for the parties to move for determination of amounts owed.

  • October 03, 2025

    Grain Production Firm Seeks Amended Judgment As To Coverage For Defective Bins

    INDIANAPOLIS — A grain production firm moved to alter or amend a partial summary judgment order in favor of a grain equipment company’s insurer in which a federal judge in Indiana held that some of the claimed losses for the repair and replacement of leaky grain storage bins related to a contractual dispute rather than to coverage liability; the grain production firm argues “that unintentional, defective workmanship constitutes an ‘occurrence’ under Indiana law.”

  • October 01, 2025

    Judge: Insurer Properly Asserted Collusion In Case Brought After Defective Work

    DENVER — A federal judge in Colorado granted an insurer’s motion for summary judgment of a townhome management company, as subrogee for a contractor’s complaint against it for insurance bad faith regarding the coverage of an underlying action the company brought against a contractor for alleged defective construction work in repairing the townhome community’s buildings’ roofs, gutters and siding; the judge found that the facts establish that a Nunn agreement between the company and the contractor was the result of collusion.

  • October 01, 2025

    Insurer Argues 7th Circuit Should Affirm Judgment, Find Exclusion Applies

    CHICAGO — An insurer asked the Seventh Circuit U.S. Court of Appeals to affirm a lower court’s grant of judgment on the pleadings to the insurer in its suit seeking a declaration that it has no duty to defend or indemnify a roofing contractor in an underlying suit alleging that the contractor’s negligent repair work contributed to the collapse of a building’s façade,  which killed two people, arguing that a Prior Work Exclusion applies to bar coverage for the underlying action.

  • September 29, 2025

    Judge Finds Policy Exclusion Preempts Duty To Defend Property Damage Suit

    RIVERSIDE, Calif. — A federal judge in California granted a commercial general liability insurer’s motion to dismiss a subcontractor’s claims against it, finding that a policy exclusion preempted the insurer’s duty to defend a cross-claim in an underlying dispute over property damage during a construction project.

  • September 29, 2025

    Judge Rules For Final Insurer In Bad Faith Suit Arising From Construction Defects

    DENVER — A federal judge in Colorado granted the last remaining defendant insurer’s motion for summary judgment in a  plaintiff insurer’s breach of contract and bad faith lawsuit seeking recovery of the defense and settlement costs that it paid on behalf of its general contractor insured in an underlying construction defects lawsuit but denied the defendant insurer’s request for attorney fees because the lawsuit was not frivolous.

  • September 26, 2025

    Builder Appeals Judge’s Finding Of No Policy Coverage Of Arbitration Award

    HOUSTON — A homebuilder filed a notice in federal court in Texas on Sept. 25 that it was appealing to the Fifth Circuit U.S. Court of Appeals a judge’s order ruling granting summary judgment in favor of the builder’s commercial liability insurer in its suit seeking indemnification for a $213,000 arbitration award for damages caused by construction defects in a home it built; the judge had found that no coverage existed under the policy.

  • September 18, 2025

    Fla. Company’s Bad Faith Claim Dismissed, Breach Of Contract Claim Continues

    TAMPA, Fla. — A federal judge in Florida granted in part and denied in part a commercial general liability insurer’s motion to dismiss a concrete paver company’s complaint against it for not defending it in an arbitration regarding defective pavers, finding that the concrete paver’s breach of contract claim was not premature but that its bad faith claim was premature because a determination of coverage in the underlying action has not been made.

  • September 18, 2025

    Settlement Requires Contractor To Dismiss Cross-Claims In Coverage Dispute

    LOUISVILLE, Ky. — A federal judge in Kentucky granted an insurer’s motion for summary judgment on a subcontractor’s cross-claims against it, finding that the subcontractor was to release its counterclaims as part of a global settlement entered into by the insurer, subcontractor and others involved in this and other legal disputes regarding work done during the construction of an off-campus student housing project. 

  • September 18, 2025

    Weather Exclusion Precludes Complaint To Enforce Coblentz Agreement With Insurer

    FORT LAUDERDALE, Fla. — A federal judge in Florida granted an insurer’s motion to dismiss a homeowner’s complaint to enforce a Coblentz agreement the homeowner entered into with a roofing company to resolve claims that arose after rain damaged the homeowner’s house while the company was replacing part of her roof, finding that a weather-related exclusion precluded coverage under the roofing company’s policy.

  • September 15, 2025

    Judge Denies Dismissal Of Water Incursion Coverage Suit

    RIVERSIDE, Calif. — A federal judge in California denied an insurer’s motion to dismiss a general contractor’s complaint against it for breach of contract for denying the contractor’s claims for coverage and defense in homeowners’ underlying suit against it after their home incurred water intrusion, finding that the damage occurred within the policy period and that no exclusions precluded coverage.

  • September 15, 2025

    Judge Grants Default Judgment In Insurer’s Suit Over Construction Coverage

    HONOLULU — A federal judge in Hawaii issued an order granting an insurer’s motion for default judgment in its declaratory action against a contractor, finding that the insurer had no obligation to defend or indemnify the contractor because there was no coverage under the policy.

  • September 12, 2025

    Insured Condo Association Settles Water Damage Suit With Insurer; Suit Dismissed

    SEATTLE — A Washington federal judge dismissed a water damage coverage suit filed by an insured condominium association against its insurer after the parties reached a settlement and stipulated to dismissal of the suit.

  • September 11, 2025

    Judge Grants Stipulation Of Dismissal After Insurer, Home Installer Settle Suit

    RICHLAND, Wash. — A federal judge in Washington granted a commercial general liability insurer and manufactured home installer’s stipulated motion and order of dismissal of the insurer’s declaratory judgment action against the manufactured home installer and the couple who had a manufactured home on their property, after the parties informed the court that the homeowners and home installer settled the underlying suit regarding defects in the installation of the manufactured home and the home installer and insurer had settled the claims in the suit.

  • September 10, 2025

    Judge Denies Builder’s Bid For Reconsideration, Finds No Policy Coverage

    HOUSTON — A federal judge in Texas denied a homebuilder’s motion for reconsideration of the judge’s ruling granting summary judgment in favor of its commercial liability insurer in the builder’s suit seeking indemnification for a $213,000 arbitration award for damages caused by construction defects in a home it built, holding that no coverage existed under the policy.

  • September 10, 2025

    Developer Argues Genuine Issues Exist As To Whether Defects Coverage Exists

    SAN FRANCISCO — A housing developer opposed its excess insurer’s motion for summary judgment in the developer’s breach of contract case in federal court in California against the insurer after the homeowners reported construction defects, arguing that genuine issues of material fact exist as to whether the insurer had breached its contract.

  • September 10, 2025

    Judge Dismisses Builder’s Construction Defects Coverage Suit Following Resolution

    PHOENIX — An Arizona federal judge directed the court clerk to enter a judgment of dismissal with prejudice in 60 days the same day the parties filed a joint notice that they have resolved a builder’s construction defects coverage suit.

  • September 09, 2025

    Insurer Dismisses Contractor From Coverage Dispute Over Construction Defects Suit

    WASHINGTON, D.C. — A federal judge issued a minute order granting a commercial general liability insurer’s voluntary dismissal of a contractor in a declaratory lawsuit determining whether it owes its policyholders a duty to defend or indemnify them for claims of construction defects brought by a group of condominium residents in an underlying state court suit.

  • September 08, 2025

    Magistrate Denies Motion For Reconsideration In Breach Of Contract Action

    PHILADELPHIA — A Pennsylvania federal magistrate judge denied a homeowner’s motion for reconsideration of the magistrate’s denial of his amended complaint against an insured for damages he was awarded in an underlying suit against an insured contractor for faulty workmanship, finding that the homeowner’s arguments had already been litigated or could not be brought on a motion for reconsideration.

  • September 04, 2025

    Judge Denies Dismissal Of Claims In Property Damage Indemnity Suit, Grants Stay

    NEW YORK — A federal judge in New York dismissed a geotechnical engineering consultant’s motion to dismiss claims brought against it by a condominium building owner’s insurer seeking a declaration that the consultant should defend and indemnify the building owner in an underlying suit brought by an adjacent building owner after its building was damaged during the construction of the condominium building, finding the case ripe.

  • September 04, 2025

    Faulty Grain Silo Coverage Suit Dismissed On Remand Per Parties’ Stipulation

    LAREDO, Texas — A federal judge in Texas dismissed with prejudice an insurer’s declaratory judgment action the same day the insurer, an insured contractor and a farmers cooperative filed a joint motion to dismiss the insured’s suit seeking a coverage declaration for the defective construction of grain silos.  The stipulation was filed the day after a magistrate judge issued an order scheduling a conference in preparation for a fall trial.

  • September 03, 2025

    Coverage Case Over Incorrectly Constructed Poultry Houses Dismissed Per Stipulation

    BIRMINGHAM, Ala. — A federal court in Alabama in a text-only docket order closed an insurer’s declaratory judgment case against its contractor insureds and the company that hired them to construct poultry houses the same day the parties jointly stipulated to dismissal of the suit without prejudice.

  • September 03, 2025

    9th Circuit Won’t Rehear Case Finding No Coverage For Substandard Work Claims

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals denied an electrical contractor’s petition for panel rehearing in a case brought by the contractor’s commercial liability insurer where the court found that the insurer owed no coverage for an underlying action alleging that the contractor’s substandard work led to flooding damage to switchgear.

  • August 26, 2025

    Condo Developer’s Concrete Slab Coverage Suit Dismissed In Wake Of Settlement

    DENVER — A federal judge in Colorado dismissed with prejudice a condominium developer’s suit against its builders risk insurer the same day the parties filed a joint stipulation of dismissal.  The parties in July notified the court that they had reached a settlement in the case, which had been scheduled to go to trial in January 2026 after the 10th Circuit U.S. Court of Appeals in December reversed a $2.54 million jury award in favor of the developer and remanded for a new trial.

  • August 26, 2025

    Insurer’s Action Against Construction Manager, Homeowners Not Time-Barred

    ST. LOUIS — A federal judge in Missouri denied motions to dismiss filed by a construction manager and homeowners in an action brought by the construction manager’s insurer seeking a declaration that the insurer owed no duty to its insured in a complaint brought against the construction manager for events arising out of the construction of the homeowners’ house; the judge found that the insurer’s complaint was not time-barred and that the claim was ripe.