Summary
The court grants Big D Builders’ motion for partial summary judgment and denies American Zurich Insurance Company’s cross-motion in an insurance coverage dispute arising from the collapse of an airplane hangar under construction. Applying Idaho law, the court holds that footings and columns installed before the policy period were covered property and were not unambiguously excluded as existing structures or existing inventory. The court further concludes that coverage would apply even if the policy language were ambiguous.
Court
United States District Court for the District of Idaho
Jurisdiction
United States District Court for the District of Idaho
Decision date
March 31, 2026
Docket number
1:25-cv-00159-BLW
Disposition
other
Questions Presented
- Whether the builder's risk policy unambiguously covered footings and columns installed before the policy period began.
- Whether the policy's exclusions for existing buildings or structures and existing inventory unambiguously excluded the pre-policy footings and columns.
- If the policy language was ambiguous, whether the court should construe the ambiguity in favor of the insured and resolve the coverage issue on summary judgment.
Holdings
- The policy unambiguously covered the footings and columns because they were property that had been installed as part of the hangar project at the designated construction site.
- The exclusions for existing buildings or structures and existing inventory did not unambiguously apply to the footings and columns.
- Even if the policy language were ambiguous, the court would construe it in favor of Big D as the insured and conclude that the footings and columns were covered.
Court Document
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