The Perils of Settlement Releases on Subsequent Litigation of Assigned Claims
A&T Siding v. Capitol Specialty Ins., No. 3:10-cv-980-AC, 2012 WL 707100 (D. Or. Mar. 1, 2012)
A siding subcontractor sued the CGL insurance carrier to recover amounts claimed due under a policy that was for the benefit of a condominium homeowners association. This lawsuit arose when a general contractor was sued by the association for construction defects and the general contractor in-turn sued the subcontractor for negligent construction. The subcontractor tendered its defense to Capitol and Zurich, each of which initially participated in the defense. Capitol subsequently withdrew its defense because it decided the alleged defects and damage took place prior to inception of its policy.