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Waiver Did Not Apply To Post-completion Loss Insurance; Waiver

Thursday, May 04, 2006 10:51 am

Waiver Did Not Apply To Post-completion Loss Insurance; Waiver

A federal court has ruled that a reciprocal waiver for insured property damage did not apply to a loss which occurred after contract completion.

The Gardens-Louisville Limited Partnership awarded a contract to Weis Builders, Inc. for construction of an assisted living facility in Louisville, Kentucky. Weis completed the project. The owner made final payment. A month later the sprinkler pipes froze and burst, causing extensive water damage to the building.

The Gardens' property insurer, Royal Surplus Lines Insurance Co., paid the owner over $300,000 to repair the damage. Royal then brought a subrogation action against Weis to reco [...]

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