Tuesday, January 08, 2013
Ind. Decisions - 7th Circuit decides one Indiana case today
In West Bend Mutual Ins. v. Arbor Homes (SD Ind., Baker, MJ), a 12-page opinion, Circuit Judge Rovner writes:
A plumber hired by homebuilder Arbor Homes, LLC, (“Arbor”) made one of the biggest mistakes a plumber can make: he forgot to connect the home’s drainage system to the city’s sewer. The question here is whether Arbor or the plumber’s insurer is liable for the resulting damages to the newly built home. Although Arbor behaved very admirably in addressing the problem for the new homeowners, it failed to protect its own interests, and we must affirm the judgment in favor of the insurer. * * *
Although Arbor’s quick and decisive aid to the Lorches was laudable, the failure of Arbor (or Willmez) to obtain West Bend’s consent to the settlement relieves the insurer of any obligation to pay for the damages caused by the plumber’s negligence. AFFIRMED.
Posted by Marcia Oddi on January 8, 2013 09:48 AM
Posted to Ind. (7th Cir.) Decisions