Confirms "All Sums" Based on American Physicians
Insurance Exchange v. Garcia
Lennar Corporation v. Markel American Insurance Company, No.
11–0394 (Tex. August 23, 2013) arose from a dispute over
insurance coverage for damage to homes caused by an exterior
insulation and finish system (EIFS). Lennar Corporation, a
homebuilder, and its subsidiaries built some 800 homes using EIFS,
but stopped using it in 1998. Following an exposé on
NBC's Dateline in 1999, Lennar was inundated with homeowner
complaints. Lennar investigated the complaints and decided to
address them by contacting all its homeowners to remove the EIFS
and replace it with conventional stucco.
Lennar notified its insurers early on that it would seek
indemnification for the costs of replacing the EIFS. Its insurers
refused to participate in Lennar's proactive efforts,
preferring instead to wait and respond to homeowners as claims were
made. All insurers denied coverage, and after litigation
