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Liberty Surplus Insurance Corp. v. Century Surety Co.

Court: SD Tx  07/12/2019  District Court Finds Insurer is not Liable for Costs to Replace Defective Roof and Stucco but is Liable for Damaged Ceiling Tiles Despite No Specific Cost Allocation in Arbitration Award

The court found that, although the arbitration award at issue allowed for recovery of costs to replace the defective roof and stucco, there was no associated property damage, and their replacement was not necessary for access to the damaged ceiling tiles. However, even though the award did not include a specific line item for the cost to replace the damaged ceiling tiles, the parties could engage in limited discovery to determine the amount owed by the insurer for that damage.

commercial general liability insurance policy, duty to indemnify, property damage, access costs, defective work, rip-and-tear, allocation

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