Carrier Ordered to Defend Contractors Against Homeowners Association

SANTA ANA, Calif. - An insurance carrier cannot decline to defend insured contractors merely because the alleged construction defects pre-dated the formation of plaintiff homeowners association or individual plaintiffs' condo ownership, a California appellate court held July 31. The Standard Fire Insurance Co. v. The Spectrum Community Association, No. G034668 (Calif. 4th App. Ct.).

The 39-page published opinion by California's Fourth Appellate District affects coverage for defendants in 68 construction defect cases brought over alleged defects in the four-story, 200-unit Spectrum Condominiums in Santa Ana.

The Standard Fire Insurance Co., filed a declaratory judgment action in Orange County Superior Court, …