On Monday, April 9th an interesting Chinese Drywall ruling came out of a court in Fort Lauderdale, Florida. Nothing terribly ground-breaking in terms of precedent-setting Chinese drywall litigation, but any ruling that involves compelling an insurance company to pay for something related to Chinese drywall is worth mentioning.
In Great American Fidelity Insurance Company et al v. JWR Construction Services, Inc., Great American – the insurance company for JWR Construction Services (who is being sued for properties they built with Chinese drywall) must immediately reimburse JWR for its defense costs thus far incurred in the underlying suits, establish a continual defense fund to provide for JWRs future defense costs, and pay attorneys fees for this action to JWR pursuant to Section 627.428, Florida Statutes.
As a homeowner with Chinese drywall you may read this and think “Why exactly am I supposed to feel good that a builder who used Chinese drywall is now being compensated for their legal costs?”. It is significant because insurance companies are refusing to defend builders who installed the Chinese drywall with fundamentally the same reasoning that they are refusing to help homeowners with Chinese drywall – the dreaded Pollution Exclusion. Although the judge declined to decide whether the insurance company has a duty to indemnify (yet), the fact he is compelling the insurance company to pay the legal fees of the builder client is some positive news.
One of the two major obligations of an insurance company is their duty to indemnify an insured in the event of a claim. The insurance company’s duty to indemnify is usually triggered when the insured’s legal obligation to pay damages is established either through a court judgment or a settlement. The judge has decided no further action will be taken until the underlying cases against the builder are settled.
Tampa Chinese Drywall Video Series – The video series walks step-by-step through an entire Chinese drywall remediation project. It also covers other issues homeowners should consider before beginning a remediation project.
Tampa Chinese Drywall Blog – The blog focusses on those issues directly relevant to any homeowner with Chinese drywall.
Tampa Chinese Drywall Twitter Feed – This twitter feed also focuses on those issue directly relevant to homeowners with Chinese drywall. The blog contains more in-depth information while the twitter feed contains the more timely issues relating to Chinese drywall.
Charter Bay Home Builders is a full-service Tampa Chinese Drywall Contractor and Remediator, Remodeler, and Custom Home Builder working throughout the greater Tampa Bay area including Hillsborough, Pinellas, Pasco, Hernando, Manatee, and Sarasota. Charter Bay can help with your Chinese Drywall Problems and Remediation, Custom Home Building, Additions, Kitchen Remodeling, Bath Remodeling, Renovation, and Remodeling needs.
In addition, as one of the few Tampa custom home builders, or remodelers, with multiple green building and green remodeling certifications (FGBC Certifying Agent and NAHB Certified Green Building Professional), Charter Bay can also assist those clients who want green features and sustainable building practices incorporated into their projects.
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