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Duo Defends Insurer Against Non-Disclosure of Defective Drywall

Aug 11, 2013 - News by

Judge Agrees Insurer Not Liable on Owner’s Misrepresentations

Senior Partner John Joy (Ft. Laud.) and Junior Partner Kelly Corcoran (WPB) recently obtained a Final Declaratory Judgment on behalf of the insurer in an action to determine insurance coverage regarding the existence of Chinese drywall in a home.

The claims against the insured were related to representations by the insured during the sale of a home regarding the non-existence of Chinese drywall (even though it was alleged the insured knew Chinese drywall was present). The insurer defended the insured in the underlying tort suit, and simultaneously filed a complaint for declaratory relief seeking a ruling that it had no duty under the policy to defend or indemnify the insured with regard to the suit based on the intentional act and business pursuits exclusions.

Judge Lucy Brown ruled in favor of the insurer, finding that the claims against the insured were that the insured intentionally made misrepresentations regarding the non-existence of Chinese drywall and made the representations in the course and scope of his occupation triggering the intentional act and business pursuits exclusions.

— Kelly Corcoran, Partner
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