Sullivan Hill Obtains Defense Verdict in Insurance Coverage Case

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On May 31, 2019, Sullivan Hill successfully obtained a defense verdict at trial in Santa Clara County Superior Court in an insurance coverage lawsuit arising out of underlying construction defect lawsuit.

The Plaintiff, who obtained an assignment of rights from the general contractor defendant, pursued insurance coverage from two insurance carriers, including an insurance carrier client of Sullivan Hill. The Plaintiff claimed our client owed defense and indemnity obligations to the named insured general contractor under our client’s commercial general liability insurance policy; whereas our client disputed obligations were owed, given the relevant facts. The Plaintiff also claimed that our client unreasonably withheld policy benefits from the named insured general contractor, while our client denied such claims.

The trial court found that no duty of defense existed, and issued judgment in favor of our client on all four causes of action in the complaint. This judgment gives our client a complete defense verdict, in the face of the $800,000+ to which the Plaintiff believed it was entitled.

“Sullivan Hill is delighted with the Court’s decision in favor of our longtime client,” said lead trial counsel and Shareholder Tim Earl. “The judgment confirms that our client properly denied coverage in the underlying action pursuant to the terms of the policy and applicable law.”

Sullivan Hill’s Construction and Insurance Litigation practice group handled the case. Shareholders Tim Earl and Erin Kennedy Clancy served as trial counsel.

Sullivan Hill’s Construction and Insurance Litigation practice group is one of the largest and best known in California.  Our attorneys specializing in construction law assist owners, developers, public entities, general contractors, subcontractors, sureties, insurance carriers and financial institutions in a variety of legal issues and disputes that arise in both private and public construction projects. Our Insurance Coverage group combines detailed and sophisticated knowledge of arcane insurance coverage issues with aggressive and resourceful claim prosecution and defense.

About Sullivan Hill:

Sullivan Hill has provided efficient, aggressive, and responsive legal representation for more than 50 years. The firm provides full service representation to clients in a variety of industries with an emphasis in insolvency, construction disputes, insurance coverage, real estate, business disputes, civil litigation, and transactional work. The firm has offices in San Diego and Las Vegas.

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On June 5, 2019
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