Court Orders Hawaii Home Insurer to Defend Against Neighbors' Suit

HONOLULU - A federal judge has ordered Clarendon National Insurance Co. to provide homeowners with a defense to property damage and emotional distress claims brought by neighbors who say the insureds' landscaping and re-grading has subjected them to increased mold exposure and other hazards. Clarendon National Insurance Co. v. Smead, et al., No. 06-00434 (D. Hawaii).

Judge Susan O. Mollway of the U.S. District Court for the District of Hawaii ruled that neither the policy's definition of "occurrence" nor an intentional act exclusion absolve Clarendon of defending homeowners Jerry Smead and Susan Hee against claims of negligence as well as …