Haley v. Kolbe & Kolbe Millwork Co.

Federal 7th Circuit Court
Civil Court
Insurance
Citation
Case Number: 
Nos. 16-3563 & 16-3648 Cons.
Decision Date: 
August 8, 2017
Federal District: 
W.D. Wisc.
Holding: 
Affirmed and reversed in part and remanded

Dist. Ct. erred in granting Intervenors-insurance companies’ motion for summary judgment, alleging that it was not obligated to defend defendant-insured in underlying defective-product lawsuit arising out of claim that windows manufactured by insured were defective and had allowed air and water to leak into and damage plaintiffs-homeowners’ homes. Under terms of insurance policies, Intervenors were not obligated to reimburse insured for replacement of defective windows that had been manufactured by insured. However, instant policies potentially covered damages caused by leaky windows to plaintiffs' homes, where exclusion in policies for property damage “to your product,” i.e., windows, did not apply to damage to plaintiffs walls and other elements of their homes that were not supplied to plaintiffs by insured. As such, Intervenors had duty to defend insured on all claims in underlying lawsuit.