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Incorrect exclusion of craft excludes Marriott franchisee's claim: court



A federal court judge upheld his earlier decision in favor of an Everest Re Group Ltd. entity and denied a franchisee's claim to Marriott International Inc. for a storm-damaged roof.

Following a windstorm in September 2018 that damaged the roof, Bethany Boardwalk Group LLC, which owns and operates a Marriott franchise in Bethany Beach, Delaware, known as Bethany Beach Ocean Suites Residence Inn, filed a claim under its policy with a unit of Hamilton, Bermuda-based Everest Re, according to Wednesday's ruling by the U.S. District Court in Baltimore in Bethany Boardwalk Group LLC v. Everest Security Insurance Co.

After Everest denied the allegation on the grounds of the policy's incorrect exclusion of craftsmanship, Bethany filed a lawsuit alleging breach of contract. [1

9659002] Judge Ellen L. Hollander ruled against the hotel on the roof damage in March, claiming that Everest was not responsible for the cost of repairing or replacing the hotel's roof.

Bethany then filed a "partial reconsideration motion," which Judge Hollander denied.

The hotel roof consisted of three layers, according to the decision: a concrete roof, insulation board and a "thermoplastic polyolefin" membrane.

reconsideration, Bethany claimed that the policy “covers the repair of the TCP membrane because the roof layer was not defective; only the insulation boards were defective. "

Bethany admitted that in her earlier summary assessment motion" there was no difference between the two distinct components of the roof, one of which was effectively constructed and the other not, "

" I reject the plaintiff's request to review my previous decision based on the allegation of an allegation that was not originally raised ", the judge ruled. Bethany "does not cite any cases that stand for the principal Bethany asks the court to rule," the decision said.

The franchisee has not identified new evidence, "Nor has Bethany shown that reconsideration is warranted based on recent evidence regarding the distinct cost of replacing the TCP membrane and insulation boards."

Bethany's attorney said he plans to appeal decision, while Everest's lawyer did not respond to a request for comment.

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