Insurance – CGL – Cross-Claimants – Declaratory Judgment Action – Construction Defects

An underlying lawsuit alleges construction defects against a subcontractor insured by the plaintiff-insurer. This action seeks a declaratory judgment that plaintiff does not owe a duty to defend or indemnify the subcontractor in the underlying action. The defendant-developers and general contractor – who have asserted crossclaims against the subcontractor in the underlying lawsuit – have standing to assert a counterclaim here seeking a declaration that plaintiff does owe the subcontractor a duty to defend and indemnify.

The court denies plaintiff’s motion to dismiss the counterclaim.

American Southern Insurance Co. v. Affordable Home Improvements (Lawyers Weekly No. 002-097-18, 11 pp.) (R. Bryan Harwell, J.) 4:17-cv-02366; J. Blanton O’Neal IV and William Marshall O’Neil for plaintiff; George Edward Mullen, Robert Wylie IV, David Brunson Miller and Holly Michelle Lusk for defendants. D.S.C.