Flaherty Secures Insurance Coverage Victory in Harrison County
Flaherty attorney Nathaniel D. Griffith recently secured a complete victory for an insurer client in a coverage dispute before the Circuit Court of Harrison County, West Virginia. The Court granted judgment on the pleadings and dismissed all claims against the insurer with prejudice, resolving the matter before costly discovery or trial.
The dispute arose after homeowners alleged that a residential contractor wrongfully obtained and retained a $98,786.26 construction-loan draw without performing work on their home. After the contractor filed for bankruptcy, the homeowners pursued claims for breach of contract, negligence, and unjust enrichment and sought to require the contractor’s commercial general liability insurer to provide a defense and indemnification.
Flaherty challenged coverage at the pleadings stage, identifying multiple independent grounds under the policies that precluded coverage. The Court agreed, finding that the alleged loss occurred outside the applicable policy periods, the alleged intentional and contractual conduct did not constitute an “occurrence,” and the complaint did not allege covered “bodily injury” or “property damage.” The Court also found that the contractual-liability and expected-or-intended-injury exclusions barred coverage.
The Court further denied the plaintiffs’ request to amend their complaint to add allegations of property damage and negligent infliction of emotional distress, concluding that the proposed amendment would be futile.
The final order dismissed all claims against the insurer with prejudice, ending the insurer’s involvement in the litigation at an early stage.
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