Court Orders Insurer to Defend Based on 'Non-Pecuniary Loss' Claim

LAFAYETTE, La. - A federal magistrate judge has concluded that homeowners' claim for "non-pecuniary loss" is sufficient to require an insurer to defend a mobile home seller against claims of faulty construction. Royal Manufactured Homes LLC v. New Hampshire Insurance Co., No. 6:09-cv-1063 (W.D. La.).

Magistrate Judge Patrick J. Hanna of the U.S. District Court for the Western District of Louisiana ruled on June 25 that while the homeowners' claims for property damage might be excluded from coverage, New Hampshire Insurance Co. is obligated to defend for bodily injury claims, which would include the claim for "non-pecuniary loss."

Royal Manufactured …