NEW ORLEANS — A district court has denied an insurance provider’s motion to make their request for insurance coverage void in a lawsuit filed by a contracting company.
JEI Solutions Inc. filed a complaint on June 6 in the U.S. District Court for the Eastern District of Louisiana against Burlington Insurance Co. Burlington then filed a motion for summary judgment, claiming that arbitration determinations decide whether certain exclusions are applicable.
The court has denied the defendant’s motion for judgment on the pleadings for summary judgment.
JEI Solutions allegedly failed to perform the work called for in a contract, and an arbitrator awarded damages against JEI for inadequate and incomplete work as itemized and delineated mainly due to the costs of repairing and replacing JEI’s defective work.
Burlington argues for a number of reasons that coverage is barred by exclusions which exclude property damage to “That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of those operations; or that particular part of any property that must be restored, repaired or replaced because 'your work' was incorrectly performed on it.”
Additionally, as the work by JEI has not been completed yet, the work in the contract has not been fulfilled and therefore is exempt from coverage.
The court has found there is a genuine question of fact as to when the covered property damage occurred and whether coverage is indeed barred.