Personal Injury Construction Insurance

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The Buck Stops Over There: Have Indemnitors Become the Insurers of First and Last Resort?

Insurance and indemnity are the primary risk management strategies on construction projects. Insurance, such as commercial general liability insurance, insures against third party claims for bodily injury and property damage,...more

Summary of California Appellate Decisions -August 2015

Insurance; Duty To Defend; Insurance Coverage; Intentional Acts; Sexual Misconduct - Gonzalez v. Fire Insurance Exchange (2015) 234 Cal.App.4th 1220, 184 Cal.Rptr.3d 394 (WL 960927) - Facts: This is an...more

California Court of Appeals Holds Liability Insurer May Obtain Equitable Subrogation Against its Insured’s Contractual Indemnitor...

In Valley Crest Landscape, Inc. v. Mission Pools of Escondido, Inc., 238 Cal.App.4th 468 (2015), the California Court of Appeals held that an insurer could successfully recover on a claim for equitable subrogation against the...more

Pennsylvania Supreme Court Holds That Insured May Settle Tort Claim Without Insurer Consent Under “Fair and Reasonable” Standard

In Babcock & Wilcox Co. v. American Nuclear Insurers, a divided Supreme Court of Pennsylvania, deciding an issue of first impression under Pennsylvania law, recently held that when an insurer defends its insured subject to a...more

Duty to Cooperate Ruling Narrows Insurers’ Ability to Foreclose Coverage for Settled Class Action Claims

Insurance policies typically include a cooperation clause, which requires the insured to cooperate with the insurer in the defense of a covered claim. Insurers routinely use this clause as a sword against their insureds by...more

Construction Case Law Update - April 2015

The fraud statute of repose does not bar fraud claims when the jury finds no evidence of the plaintiff’s reliance during the repose period, because it is the defendant’s last action or omission that triggers the fraud repose...more

Designers, Contractors and Insurers Take Note: Recent Amendment to IL Statute of Repose Strips Asbestos Defense, Exposes Decades...

On December 19, 2014 the Illinois legislature amended the Illinois construction statute of repose to eliminate its protection in asbestos exposure cases (Public Act 098-1131). Beginning June 1, 2015, design professionals and...more

Ninth Circuit Enforces Waiver of Subrogation Clause in Design/Build Agreement Against Post-Construction Property Insurer

Travelers Indem. Co. v. Crown Corr, Inc., 2014 U.S. App. LEXIS 21101 (9th Cir. 2014) - This action arose out of the construction of the University of Phoenix Stadium (the “Stadium”), home of the Arizona Cardinals. ...more

More “Texas Justice” For Policyholder On Contractual Liability Exclusion

On October 29, the Fifth Circuit reversed itself for the second time this year in a case involving the interpretation of a contractual liability exclusion in a CGL policy. This recent decision by the Fifth Circuit in...more

No CGL Coverage for Faulty Workmanship Under Pennsylvania Law

In State Farm Fire & Casualty Co. v. McDermott, 2014 WL 5285335 (E.D. Pa. Oct. 15, 2014), a federal court recently held that an insurer has no duty to defend or indemnify its insured against an underlying construction defect...more

Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd – more claims against building practitioners?

On 6 August 2014, the Victorian Court of Appeal handed its decision in Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165. The decision clarified the operation of limitation periods in...more

“California’s Right To Repair Act Is Not A Homeowner’s Exclusive Remedy When Construction Defects Cause Actual Property Damage.”

The California Court of Appeals recently issued two decisions holding that California’s Right to Repair Act (“SB 800”) is not the exclusive remedy for a homeowner seeking damages for construction defects that have also...more

Alabama Supreme Court Reverses Course, Finds Insurance Coverage for Faulty Workmanship Claims

Companies such as homebuilders, construction companies and contractors face significant financial risk from bodily injury and property damage claims arising from allegedly faulty workmanship or construction defects. Although...more

Federal District Court in Pennsylvania Allows Negligence Suit Against Builder Despite Lack of Privity of Contract Between the...

A Federal Court in Pennsylvania has handed down a ruling that may expand the pool of potential plaintiffs in construction litigation. See AMCO Insurance Co. v. Emery and Associates, 926 F. Supp. 2d 634 (W.D. Pa. 2013). In...more

Illinois Court Holds Insured Cannot Deselect Insurer In Connection With Underlying Settlement

In its recent decision in AMCO Ins. Co. v. Cincinnati Ins. Co., 2014 Ill. App. LEXIS 296 (May 5, 2014), the Appellate Court of Illinois, First District, had occasion to consider whether an insurer selected by an insured’s...more

Alabama Supreme Court Clarifies Position on Construction Coverage Question: Damage to Contractor’s Work Resulting from Faulty...

In an important decision for policyholders in the construction business, the Supreme Court of Alabama recently clarified that Alabama law is in accord with the growing majority of jurisdictions finding coverage for property...more

Insurance Recovery Law

Suit Alleging Drug Distributor Was a “Pill Mill” Requires Defense - Why it matters: A Kentucky federal court held that the claimed impact in a suit brought by the West Virginia Attorney General – alleging that...more

Florida High Court Liberally Construes Self-Insured Retention Endorsement

On February 6, 2014, the Florida Supreme Court took a liberal view of self-insured retentions (SIRs) and held that an insured can apply indemnification payments from a third party to satisfy its SIR under a general liability...more

Texas Supreme Court Reverses Lower Court’s Holding Excluding Construction Defect Claim From Coverage Under CGL Policy

In a victory for contractors, the Texas Supreme Court recently held that a contractor does not lose coverage under its commercial general liability (“CGL”) policy merely because it entered into a contract agreeing to perform...more

Texas Supreme Court Rejects Insurer Attempt to Expand Limited Insurance Exclusion for Liability Assumed by Contract, Holding that...

In a highly anticipated ruling earlier this month, the Texas Supreme Court rejected Amerisure Insurance Company’s attempt to radically expand the scope of a common exclusion for liability assumed by contract found in many...more

Texas Supreme Court Limits Liability Exclusion in Ewing

On January 17, 2014, the Texas Supreme Court issued a key ruling clarifying the scope of contractual liability exclusions in insurance policies. In Ewing Const. Co., Inc. v. Amerisure Ins. Co., 2014 WL 185035 (Tex. Jan. 17,...more

Texas Supreme Court Rules CGL Policy’s “Contractual Liability" Exclusion Does Not Bar Coverage for Claims Arising From...

On January 17, 2014, the Supreme Court of Texas rejected a commercial general liability (“CGL”) insurer’s attempt to invoke the “contractual liability” exclusion to deny coverage under a standard CGL policy regarding a...more

Texas Supreme Court Holds “Contractual Liability” Exclusion Inapplicable

In a long and highly anticipated decision issued today, the Texas Supreme Court held that a standard “contractual liability” exclusion does not void coverage for claims alleging that a contractor failed to construct a project...more

“John Doe” Saves the Day in Washington: Avoiding S.O.L. Defense by Properly Naming “Doe” Defendants

In Powers v. W.B. Mobile Servs., Inc., 311 P.3d 58, 2013 WL 5645561 (2013), Division Two of the Washington Court of Appeals held that if a plaintiff (1) names a “John Doe” defendant with “reasonable particularity,” files suit...more

Allegations in Third-Party Complaint May Trigger Duty to Defend

Although a personal injury complaint filed by a subcontractor’s employee alleged direct negligence only against the additional insured contractor, the vicarious liability coverage afforded the additional insured was...more

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