Drywall Seller Can't Allege Duty to Defend if Insurers Paid Bills, Judge Says

BOULDER, Colo. - A state court judge in Colorado has dismissed several counts of a declaratory judgment action brought by Probuild Holdings after it claimed that its insurers are obligated to defend and indemnify it against claims filed in Louisiana and Florida. Probuild Holdings Inc., et al. v. Granite State Insurance Co., et al., No. 10CV378 (Colo. Dist. Ct., Boulder Cty.).

Boulder County District Court Judge Carol Glowinsky ruled Dec. 7 that she lacks jurisdiction to resolve coverage questions related to the insurers' duty to defend Probuild because they have so far paid all costs associated with the drywall seller's …