Insurer Not Obligated to Indemnify Contractor for Storm Damage Repair, 3rd Cir. Rules

PHILADELPHIA — Westfield Insurance is not obligated to indemnify a steel contractor for sums it paid to repair rainstorm damage to a project because it was never sued for the damage, a 3rd Circuit U.S. Court of Appeals panel has ruled.

In a March 21 opinion, the panel explained that Westfield’s obligation to based upon the existence of a “suit” filed against the insured, but no such suit had been filed. Absent a suit, Westfield had no indemnity obligation, the panel affirmed.

Modular Steel Systems Inc. was hired to provide “prefabricated modular units” as part of the construction of …