SAN DIEGO — A developer is suing American Safety Indemnity Co., an insurer, citing alleged breach of contract.

Pulte Home Corp. filed a complaint on Oct. 14, in the U.S. District Court for the Southern District of California against American Safety Indemnity Co. alleging that the insurer breached its duty of good faith and fair dealing.

According to the complaint, the plaintiff alleges that beginning in Oct. 2012, Pulte Home Corp. was served several notices of claims by homeowners-claimants, alleging defects and resulting damages to their single-family homes against several of the subcontractors contracted by plaintiff. Consequently, plaintiff as a developer becomes obligated to defend its subcontractors and has relied on the certificates of insurance and endorsements provided by the subcontractors naming plaintiff as an additional insured on the subcontractors’ insurance policies, whereas the defendant contends that it has no obligation to fully defend plaintiff, thereby causing plaintiff to suffer monetary damages. 

The plaintiff holds American Safety Indemnity Co. responsible because the defendant allegedly refused to afford plaintiff a full and complete defense in the underlying actions and failed to conduct a timely or adequate investigation of plaintiff's claims.

The plaintiff requests a trial by jury and seeks judgment against defendant, declaratory judgment, compensatory damages in an amount in excess of $75,000, punitive and exemplary damages in an amount not less than $1 million, fees, costs, interest and further relief as the court deems just. They are represented by Robert C. Carlson, Sharon A. Huerta and Sarah P. Long of Koeller, Nebeker, Carlson & Haluck LLP in San Diego.

U.S. District Court for the Southern District of California Case number 3:16-cv-02567

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U.S. District Court for the Southern District of California
221 W Broadway
San Diego, CA - 92101

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