Gilnad Wilson

Application of Construction Law

FIRAC #4
W975431
Mutual Benefit v. Bolt 227 F.Supp.2d 469; 2002 U.S. Dist.

FACTS

 On January 1st, 1999 Wise M. Bolt Company, Inc. got a liability insurance policy form Mutual
Benefit Group.
 A contract to build a house was entered between the Tracey’s and Wise M. Bolt Company on
October 14th, 1998
 The Tracey’s did not like the standard or quality of work done and filed a lawsuit in July 2001
 Bolt Company requested Mutual Benefit represented them in the lawsuit and Mutual Benefits
agreed on October 31st, 2001
 December 19, 2001, Mutual Benefit filed a lawsuit against Bolt Company

ISSUE

 Is the Mutual Benefit group going to honor its client's Wise M. Bolt Company liability insurance
policy?

RULE

 The rule that prevails is in Maryland, an insurance policy is a contract and is to be read as any
other contract.
 The next rule is in Maryland is firmly recognized that when an insured must resort to a lawsuit to
enforce its insurer's contractual duty to deliver coverage for its possible liability to hurt third
parties, the insured is entitled to a repay its attorneys' fees and expenses experienced in that
lawsuit

ANALYSIS

The insurance policy should have been more specific about damages that it will not cover. the contractor
should have been given direct responsibility for the damages. The faults were major and a clear indication
of poor workmanship. their liability insurance was a written contract that stated that I would cover any

CONCLUSION

Yes.

References

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https://law.justia.com/cases/federal/district-courts/FSupp2/227/469/2529965/
Construction Law Casebook Second Edition by Gregory F. Starzyk

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