The controversy in this case is between an insurer, General Fidelity Insurance Company, and its insureds, Intervest Construction of Jax, Inc. and ICI Homes, Inc. (collectively “ICI”), regarding whether General Fidelity breached its obligations under a general liability insurance policy held by ICI.
The coverage dispute at issue arose from a personal injury suit brought against ICI by Katherine Ferrin, who purchased and lived in a home built by ICI. During the construction of Ferrin’s residence, ICI hired Custom Cuttings, Inc. to install the attic stairway. Pursuant to its subcontract with ICI, Custom Cuttings agreed to indemnify ICI from any damages or claims brought against ICI as a result of Custom Cuttings’s negligence. In April 2007, Ferrin received serious injuries from a fall while using the attic stairs installed by Custom Cuttings. She brought suit solely against ICI. In turn, ICI sought indemnification from Custom Cuttings pursuant to the terms of their subcontract. At the time of Ferrin’s accident, ICI held a general liability insurance policy with General Fidelity (the “General Fidelity Policy”) and Custom Cuttings held a general liability insurance policy with North Pointe Insurance Company.
The terms of the General Fidelity Policy included a Self-Insured Retention endorsement (“the SIR endorsement”), requiring ICI to pay $1 million towards its own losses before General Fidelity had a duty to defend or indemnify ICI for any occurrence or event. The General Fidelity Policy also contained a transfer-of-rights provision giving General Fidelity subrogation rights over certain ICI claims.
Judge(s): Per Curiam
Jurisdiction: U.S. Court of Appeals, Eleventh Circuit
Related Categories: Contracts , Insurance
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