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Liability Insurer Pays to Resolve Wrongful Death Action Against Builder of High-End Homes Notwithstanding Prior Denial of Insurance Coverage

By April 24, 2024July 16th, 2024Thom Williams

A developer and general contractor of high-end homes in the Seattle area was sued by the estate of a worker who had died after falling at one of the developer’s projects.  The developer’s liability insurer agreed to defend the lawsuit, but denied any indemnity obligation to pay the final judgment or settlement reached in the lawsuit.  The insurer then filed a declaratory judgment action against the developer, requesting a ruling consistent with its coverage position.  Harper│Hayes successfully stayed the declaratory judgment action pending the outcome of the wrongful death lawsuit.  At a mediation two months later, the insurer agreed to pay to settle the wrongful death action on the developer’s behalf.