11th Circuit Finds for Insurer Sued by Builder Over Defects

MIAMI - The 11th Circuit Court of Appeals has affirmed a decision barring insurance coverage for a contractor forced to make significant repairs to three different building projects. Hathaway Development Company Inc. v. Illinois Union Insurance Co., No. 07-15155 (11th Cir.).

The appellate panel said in its unpublished opinion on April 18 that mold and other exclusions in a general liability policy issued by Illinois Union Insurance Co. preclude coverage for repairs to faulty workmanship Hathaway Development Company Inc. blamed on subcontractors.

Hathaway filed a claim for $686,749.80 for repairs to developments in Jacksonville, Fla., East Point, Ga., and Knoxville, …