First Mercury Sues to Avoid Coverage of Mississippi Shopping Center Defects

SHERMAN, Texas - First Mercury Insurance Co. has filed a declaratory judgment action disclaiming any potential coverage for damage to a 700,000-square foot outdoor mall in Mississippi caused by a soil additive that allegedly has expanded and cracked foundations, walls and floors. First Mercury Insurance Co. v. M. Hanna Construction Co., et al., No. 4:10-cv-535 (E.D. Texas).

The carrier filed the seven-page action against its insured, M. Hanna Construction Co. Inc. and the mall developer, The Promenade D'Iberville LLC, on Oct. 8 in the U.S. District Court for the Eastern District of Texas, where M. Hanna is located.

First Mercury …