National Trust Insurance v. Graham Bros. Construction Co.
2013 U.S. Dist. LEXIS 1363
| M.D. Fla. | 2013Background
- National Trust issued CGL policy CPP0004212 to Graham Brothers (2004–2006).
- Specialized Services joined policy in 2005; contracted to perform site prep for The Verandahs project.
- Investigations in 2006 revealed buried organics and improper fill; remediation occurred May–August 2006.
- Len-Verandahs remediated defective lots starting 2006; project completed 2011; Len-Verandahs sued Specialized Services and Graham Brothers in 2008–2010.
- National Trust sought declaratory relief that the policy did not cover the underlying claims; venue then moved to Florida court system.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Choice of law governing contract interpretation | National Trust: Georgia law controls delivery; Florida choice-of-law rules apply. | Len-Verandahs: policy delivered in Georgia; Georgia law governs interpretation. | Florida law applies to contract interpretation. |
| Duty to defend and indemnify Specialized Services | No property damage/occurrence under policy; no duty to defend or indemnify. | Some underlying damages may fall within policy coverage; duty to defend/indemnify contested. | No duty to defend or indemnify Specialized Services; coverage ruled out. |
| Duty to defend/indemnify Graham Brothers; notice issues | Untimely notice defeats coverage; prejudice shown. | Notice timing disputed; potential coverage depends on facts. | Graham Brothers untimely notice precludes coverage; prejudice shown; no defense/indemnity. |
| Len-Verandahs’ counterclaims for breach and declaratory relief | No coverage for damages; no breach by National Trust; policy limits apply only to insured’s payment obligations. | If additional insured, may recover; otherwise may seek damages through coverage. | National Trust granted summary judgment on both counterclaims. |
Key Cases Cited
- Auto-Owners Ins. Co. v. Travelers Cas. & Sur. Co., 227 F.Supp.2d 1248 (M.D. Fla. 2002) (duty to defend determined by allegations in complaint)
- State Farm Mut. Auto. Ins. Co. v. Roach, 945 So.2d 1160 (Fla. 2006) (policy coverage requires occurrence and property damage within period)
- J.S.U.B., Inc. v. United States Fire Ins. Co., 979 So.2d 871 (Fla. 2007) (occurrence includes unintended damages; coverage scope broader)
- Ideal Mut. Ins. Co. v. Waldrep, 400 So.2d 782 (Fla. 3d DCA 1981) (timeliness of notice governed by reasonable dispatch)
- Laster v. United States Fid. & Guar. Co., 293 So.2d 83 (Fla. 3d DCA 1974) (untimely notice raises prejudice presumption)
- AIG Premier Ins. Co. v. RLI Ins. Co., 812 F.Supp.2d 1315 (M.D. Fla. 2011) (choice-of-law for insurance contracts in diversity cases)