Insurer’s Policy Exclusion Bars Its Own Claim for Damages

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The Eastern District of Louisiana cited to an insurer’s own policy exclusion for “faulty workmanship, repair or construction” to prohibit the insurer from seeking damages.  The damages being sought amounted to more than $2.8 million, including for damage caused by roofing repair work.  The work was performed on a commercial building that was damaged by Hurricane Issac.

In making its decision, the court indicated that its policyholder was seeking coverage due to hurricane damage, not faulty repairs relative to the hurricane damage.  Since the “faulty workmanship” exclusion was “plain” in barring coverage for such damage, “then … [the roofer] is entitled to summary judgment.”  The court found no genuine issue of fact that could dispute this finding.  Lastly, the court noted that since the insurer did not pay any damages, it could not step seek damages against the roofer in a subrogation matter.

Cedar Ridge, LLC v Landmark American Insurance Company et al. (No. 13-672) (E.D. La., January 27, 2014)