Zurich Denied Summary Judgment in Dispute Involving San Francisco Transit Center Project

SAN FRANCISCO — A federal judge has denied Zurich American Insurance Co. summary judgment in an insurance dispute involving a San Francisco transit center construction project, ruling there are questions of fact as to whether coverage is barred under the policy’s Cost of Making Good Exclusion.

In a Feb. 15 order, Judge Susan Illston further ruled there are factual disputes as to whether a majority of the claimed losses are not for repair costs and therefore not covered under the policy, and whether Zurich handled the policyholder’s claim in bad faith.

In March 2009, Webcor-Obayashi Joint Venture and the Transbay …