18 July 2012

Tenth Circuit affirms dismissal of declaratory relief action in construction defect insurance dispute

The Tenth Circuit issued a helpful opinion today concerning declaratory judgment actions and insurance coverage for construction defects. The panel affirmed a federal district court's order dismissing an insurance carrier's declaratory relief suit against a homeowner association that was seeking to garnish a builder's insurance policy in Kansas state court.

The US District Court for the District of Colorado has reached the same result in at least three unpublished rulings in recent years, but this precedent should help clarify the issue in future disputes.