Denis J. Moriarty and Florence H. Gerlitz recently prevailed on a motion for summary judgment in an equitable contribution action brought by our client's co-insurer seeking to recover $1.5M for defense fees and costs and indemnity payments. The two insurers insured a general contractor that agreed to build a single family residence, but was terminated by the homeowners before construction of the residence was completed and prior to the inception of our client's policy. As a result, our client did not defend or indemnify the insured in the underlying action brought by the homeowners. The co-insurer defended and indemnified the insured and then sought to recover its defense costs and indemnification payment from our client. Our client disclaimed coverage on the grounds that there were no completed operations under its policy and that the business risk exclusions operated to bar coverage for property damage that occurs during ongoing construction operations. Our motion for summary judgment was based on the same grounds. The trial court agreed and our motion was granted.
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