Acknowledgement to XL Environmental
THE CLAIM
An insured contractor was retained to build a church under the design/build construction project delivery method. After the church was completed, the owner noticed cracked concrete, uneven floor tiles, and damage to interior and exterior walls. It was determined that excessive moisture had migrated under the church, causing the foundation to heave. The owner filed suit against the insured contractor. Allegations against our insured contractor included improper site grading away from the building and a failure to adequately design the void boxes used under the tilt-up wall panels of the church.
THE RESPONSE
XL’s environmental claims attorney monitored the case which was being defended by the insured’s general liability carrier as a construction defect claim involving improper grading. Close communication with the insured was maintained throughout the legal process. Over time, the claim evolved from a construction defect claim into a professional liability claim, due to allegations that our insured should have detected the grading specification omission in the grading subcontractor’s plans.
THE SOLUTION
The general liability (other carrier) and professional liability (XL) carriers agreed to allocate 40% of the damages to the professional liability carrier and 60% to the general liability carrier. Ultimately, XL paid over $1 million under the insured’s combined Professional and Contractor’s Pollution Legal Liability Policy to resolve the claim against our insured.