In Fireman’s Fund v. Sneed Shipbuilding, Superior Shipyard filed suit against Sneed Shipbuilding in Lafourche Parish (17th JDC), then amended under Louisiana’s direct action statute to name Sneed’s builder’s risk insurer (Fireman’s Fund) and its GL insurer, Federal. Fireman’s Fund. Duncan and Sevin represented Fireman’s Fund.
Fireman’s Fund and Federal filed declaratory judgment actions in the Eastern District of Louisiana to establish the Policies do not provide coverage for claims of defective workmanship. Fireman’s Fund and Federal moved for summary judgment in the Lafourche Parish litigation on the basis that Superior’s tort claims against Sneed had prescribed. After winning this motion, Judge Fallon heard the issue of coverage. Fireman’s Fund moved for summary judgment on two bases: first, Superior’s allegations against Sneed were for shoddy workmanship, which the builder’s risk policy did not cover. Second, Fireman’s Fund argued the Builder’s Risk policy did not cover contractual liability. Judge Fallon agreed: the Builder’s Risk Policy does not cover shoddy workmanship. He granted summary judgment in favor of Fireman’s Fund, then granted a declaratory judgment that the Policy does not provide coverage to Sneed.
Duncan & Sevin represented Fireman’s Fund in the litigation.