Bad Faith Blog

Drury Company was a subcontractor which added a commercial roofing product to the Jackson R-2 School District school building. Missouri United School Insurance Counsel (MUSIC) issued an all risk “special property coverage” policy which included “automatic builders risk” insuring the School District, its prime contractor, and all levels of subcontractors. MUSIC denied the claim of subcontractor Drury Company, but the trial court denied MUSIC’s Motion to Dismiss while granting Drury’s Motion for Summary Judgment, which included a statutory vexatious award. The Missouri Appellate Court affirmed.

BSI Constructors, a general contractor, had to replace the roof installed by one subcontractor and improperly protected by other subcontractors. After having to replace the roof at a cost of approximately $174,000, Hartford denied its claim. That denial was supported by the district court on summary judgment and the Eighth Circuit affirmed on appeal on both the breach of contract claim and the vexatious refusal to pay claim.