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.