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Insurer Ordered To Pay Contractor $2.5M For Botched Defense
Law360 (July 6, 2021, 8:18 PM EDT) An Oregon federal judge on Tuesday ordered Preferred Contractors Insurance Co. to pay $2.5 million to a contractor for failing to properly defend it in an underlying construction defect suit, finding the insurer s objections to a magistrate s recommendation were without merit.
U.S. District Judge Michael H. Simon rebuffed PCIC s argument that policyholder Hospitality Management Inc. s ownership by the same apartment complex that initiated the underlying suit created an inference that a $2.5 million settlement reached between HMI and general contractor KeyWay Corp. before trial was inherently collusive. He adopted in full U.S. Magistrate Judge Youlee Yim You s March 17 recommendation, which. ....

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