Allocation of Damages/Motions to Intervene
The U.S. District Court for the Southern District of New York recently decided Uvino v. Harleysville Worcester Ins. Co., No. 13-4004, 2015 WL 925940 (S.D.N.Y. Mar. 4, 2015). In the underlying lawsuit, the homeowner plaintiffs brought construction defect claims against a contractor who acted as “Construction Manager” during the development of their home. The contractor was insured under a CGL policy and was provided a defense by its insurer in the underlying action, pursuant to a reservation of rights.
The insurer sought to intervene before the underlying trial, requesting that special interrogatories be submitted to the jury to allocate damages between the contractor’s faulty work and damage to other property. The court denied the insurer’s motion and the jury ultimately rendered a verdict in favor of the homeowners. The insurer denied coverage and a declaratory judgment action was initiated. Considering cross motions for summary judgment, the District Court denied the insurer’s motion and held that the homeowners were entitled to an allocation proceeding where they could offer proof as to what portion of the general verdict is attributable to covered claims.