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Saturday, April 27, 2024

Pulte claims insurers owe millions in coverage denied for Perris homeowners' construction defects lawsuit

Lawsuits
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Scott Thomas | Payne & Fears

Homebuilder Pulte has filed suit against a long list of insurance companies, who Pulte accuses of have reneging on obligations to cover Pulte's costs to defend against a lawsuit from dozens of Riverside County homeowners.

That separate legal action asserted the builder should pay $9 million for alleged construction defects Pulte claims were caused by its contractors and subcontractors who worked on the project in Perris.

The lawsuit was filed March 18 in the U.S. District Court for the Central District of California Western Division.

Pulte is represented in the action by attorneys Scott S. Thomas, Sarah J. Odia and Blake A. Dillion, of Payne & Fears LLP, of Irvine.

Defendants named in the lawsuit include insurers: HDI Global Specialty SE; Kinsale Insurance Company; First Specialty Insurance Corporation; United Specialty Insurance Company; Peleus Insurance Company; Ironshore Specialty Insurance Company; Starr Indemnity & Liability Company; First Mercury Insurance Company; QBE Specialty Insurance Company; Allied World Assurance Company (US) Inc.; Twin City Fire Insurance Company; Rockhill Insurance Company; Old Republic Insurance Company; Liberty Mutual Fire Insurance Company; ACE American Insurance Company; Benchmark Insurance Company; James River Insurance Company; and Clear Blue Specialty Insurance Company.

According to the complaint, Pulte was targeted in October 2020 by a legal action in Riverside County Superior Court on behalf of 57 homeowners in the Avelina community in Perris. The lawsuit accused Pulte of construction defects in the residents' new homes, totaling more than $9 million in damage claims.

Pulte continues to defend itself in court against the lawsuit.

According to the new complaint, Pulte asked the insurers, who had issued policies to contractors and subcontractors Pulte hired to build the homes, to cover its costs related to the lawsuit. However, the lawsuit said all the defendant companies have allegedly refused or ignored the coverage requests. Pulte claims the coverage denials were improper and in breach of their policy agreements.

The lawsuit seeks an order declaring the insurance companies owe Pulte coverage. Pulte further is asking the court to order the insurers to pay it damages, including punitive damages and attorney fees.

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