Plaintiffs v. Insurer
Sedgwick obtained summary judgment on behalf of our client, an insurer, in a case filed in Texas state court. The plaintiffs developed a luxury condominium project on the shores of Lake Austin. Several years after selling one of the condominiums, the plaintiffs were sued by the owners. The owners asserted that there was extensive water damage to their home as a result of faulty construction. The plaintiffs sought a defense and indemnity under a commercial general liability policy issued by our client, which denied the coverage. After settling with the condominium owners, the plaintiffs filed suit against our client seeking their defense and indemnity costs and asserting extra-contractual claims. In the motion for summary judgment, we argued that a policy exclusion precluded coverage for any defense or indemnity obligation because the plaintiffs owned the condominium at issue at all times during the policy period. Accordingly, even if there was covered property damage that occurred during the policy period, the policy exclusion precluded coverage for property damage to property owned by the insured. We also argued that the extra-contractual claims failed, as a matter of law, because our client's denial was reasonable. The court granted summary judgment as to all claims asserted.