Strong and Hanni

Construction and Insurance Coverage Group News
Strong & Hanni obtains summary judgment for insurance carrier client.
11/9/2007 8:44:40 AM

Robert L. Janicki and Lance H. Locke recently obtained summary judgment on behalf of their insurance carrier client. The plaintiff, a governmental entity, brought suit against the insurance carrier alleging breach of contract. The claim for breach of contract was asserted on the basis that the plaintiff was required to be named an additional insured under the insurance carrier’s policy of insurance pursuant to the plaintiff’s agreement with the co-defendant construction company with whom the plaintiff had contracted. The plaintiff sought recovery of funds it had paid out to a third-party as a result of an alleged defect in the construction project which was completed a few months prior to the date of loss by the co-defendant construction company. The court granted the insurance carrier’s motion for summary judgment and ruled as a matter of law that the terms of the insurance policy terminated the plaintiff’s status as an additional insured under the policy once the construction project was put to its intended use by the plaintiff.