A Florida court has determined that a project owner's (Cypress) general partner was not an additional insured under an insurance policy issued to the Genral Contractor (WPC) who constructed the project. The ruling was made in conjunction with a lawsuit brought by a homeowners association for construction defects, maintenance issues and failure to disclose material … Continue reading Florida Rules Developer Not Entitled to Additional Insured Coverage for Negligent Misrepresentation
A recent unpublished opinion by the Sixth Circuit Court of Appealshas held that a contractor’s allegedly poor workmanship did not constitute an “occurrence” under the contractor’s policy of insurance. The facts in this matter can be summarized, as follows: Wal-Mart contracted with MW Builders ("Contractor") to construct a new store in Kentucky. Contractor subcontracted the … Continue reading Kentucky Commercial Subcontractor’s Work Deemed to be Faulty and Insurance Not Triggered
A 2011 S.C. Court of Appeals decision has further clarified South Carolina’s treatment of comparative fault in construction defect suits. http://m.sccourts.org/opinions/displayUnPubOpinion.cfm?caseNo=2011-UP-260 An owner of a hotel located in South Carolina brought a construction defect action against the general contractor, subcontractors for damages resulting from original construction. The General Contractor responded with affirmative defenses and third-party claims … Continue reading Construction Defect Suits and Apportionment Under McGonigal’s Flamingo v. RJG
Economic conditions are causing economic duress among homeowners, buidlers, and contributing to litigation involving matters of contract such as mechanics lien claims for non-pament. While liability insurance is not intended to pay for these contractual and commercial suits, the reality is that frivilous counterclaims by owners can trigger an insurer's duty to defend even the most frivilous of claims.