SB17-045 - Construction Defect Claim Allocation Of Defense Costs

Postponed Indefinitely
Concerning a requirement for equitable allocation of the costs of defending a construction defect claim.

In a construction defect action in which more than one insurer has a duty to defend a party, the bill requires the court to apportion the costs of defense, including reasonable attorney fees, among all insurers with a duty to defend. An initial order apportioning costs must be made within 90 days after an insurer files its claim for contribution, and the court must make a final apportionment of costs after entry of a final judgment resolving all of the underlying claims against the insured. An insurer seeking contribution may also make a claim against an insured or additional insured who chose not to procure liability insurance for a period of time relevant to the underlying action. A claim for contribution may be assigned and does not affect any insurer's duty to defend.

(Note: This summary applies to this bill as introduced.)


Latest update: May 9, 2017
05/09/2017 - Senate Committee on Appropriations Postpone Indefinitely
02/08/2017 - Senate Committee on Business, Labor, & Technology Refer Amended to Appropriations
01/11/2017 - Introduced In Senate - Assigned to Business, Labor, & Technology