Breach-of-Contract Exclusion Bars Coverage for Homeowners' Claims

BATON ROUGE, La. -Homeowners' allegations of defects in materials and shoddy workmanship by subcontractors arise from their contract with the builder and are excluded from coverage under the builder's general liability policy, a Louisiana appellate court affirmed on May 8. Everett v. Philibert, et al., No. 2008 CA 2270 (La. Ct. App., 1st Dist.).

The First Circuit Court of Appeal refused to overturn a decision by a Louisiana district court denying a defense to Bel Oaks Builders Inc. and awarding summary judgment to Essex Insurance Co.

Bel Oaks sought coverage for a lawsuit filed by Aldon and Eloyce Everett, alleging …