Insurer Had No Duty to Defend Subcontractor Added to 3rd-Party Suit

TROY, Mich. - Michigan's Court of Appeals has ruled that an insurer had no duty to defend a subcontractor named as a third-party defendant in a mold suit because the homeowner's alleged damage could not fall within the policy coverage. Prokes v. Auto-Owners Insurance Co., No. 278321 (Mich. Ct. App.).

The Court of Appeals on Sept. 25 affirmed lower court decisions in favor of Auto-Owners Insurance Co., which cited policy language in denying a defense or indemnification to its insured.

Water-Tite Co. sought a defense from AOIC when it was named in a third-party lawsuit initiated by Jonna Construction Co., …