Court Finds Insurer Had Duty to Defend Contractor in EIFS Defect Case

PORTLAND, Ore. - A federal magistrate judge ruled on Feb. 9 that a carrier who first insured a siding contractor three years after completion of a condominium project must share in defense of a property damage case because the underlying complaint leaves open the possibility that damage occurred during the later policy period. Valley Forge Insurance Co. v. American Safety Risk Retention Group Inc., No. CV-05-71-HU (D. Ore.).

Magistrate Judge Dennis J. Hubel of the U.S. District Court for the District of Oregon denied summary judgment on the issue of indemnification, saying questions of fact remain.

American Safety Risk Retention …