A federal appeals court on Tuesday upheld a lower court ruling that an insurer is not required to defend a land developer accused of negligent design and construction under exceptions to its policy. provided commercial general liability protection to Colorado Springs, Colorado-based HT Services LLC which covered four acres of land on which it developed a residential area, pursuant to the decision of the 10th U.S. Circuit Court of Appeals in Denver in HT Services LLC v. Western Heritage Insurance Co.
In 2016, the development's homeowners 'association sued HT Services, among others, for design defects related to a retaining wall and claimed that they were caused by HT Services' negligent behavior. Western denied coverage and refused to defend HT Services against the lawsuit.
After settling the homeowners' disputes, HT Services filed a lawsuit against Western, accusing it of breach of contract and lack of insurance. The U.S. District Court in Denver ruled in favor of the insurer and was upheld by a unanimous three-judge appeals panel.
"HT Services protests that a retaining wall is not a" housing structure ", but the conditions for prior exclusion are broad and apply to trials" that originate from, relate to or in any way linked to "construction of housing structures," the decision said. , with reference to an earlier decision.
The policy also excludes coverage for "incorrect execution", the decision states. "We agree with the district court that the accusations" about the homeowners' association's complaints "fall entirely within this exception," the decision said, confirming the lower court's dismissal of the case.
An HT Services lawyer had no comment while the insurer's lawyers did not respond to a request for comment.