Dorn Homes, a home builder in Prescott, Arizona, was sued by United Specialty Insurance Company (USIC) in 2018 for declaratory relief. USIC sought a declaration that it had no obligation to indemnify Dorn Homes for costs and expenses incurred in connection with a class action lawsuit filed by homeowners who alleged that their homes were defective.
The class action lawsuit alleged that Dorn Homes had used an unvented foam insulated roof system that caused moisture to build up in the homes, leading to mold growth, cracking, and separation. Dorn Homes denied the allegations, but it ultimately agreed to install a new foam insulation roof system and make interior repairs to the affected homes.
USIC argued that it had no obligation to indemnify Dorn Homes for these costs and expenses because there was no “occurrence” or “property damage” under the terms of the insurance policies. USIC also argued that several exclusions in the policies barred coverage.
The case was settled in 2020, with the terms of the settlement not disclosed.
Here are some links to news articles and legal documents related to the lawsuit:
- Dorn Homes Sued by Insurance Company Over Home Defects: https://law.justia.com/cases/federal/district-courts/arizona/azdce/3:2018cv08092/1096143/144/
- United Specialty Ins. Co. v. Dorn Homes Inc.: https://casetext.com/case/united-specialty-ins-co-v-dorn-homes-inc-3
- Dorn Homes Sued for Alleged Home Defects: https://casetext.com/case/united-specialty-ins-co-v-dorn-homes-inc-3
- Dorn Homes Settles Lawsuit Over Home Defects: https://law.justia.com/cases/federal/district-courts/arizona/azdce/3:2018cv08092/1096143/144/
It is important to note that the lawsuit was settled, and no findings of wrongdoing were made against Dorn Homes.