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Mt. Hawley loses Eleventh Circuit coverage appeal after settlement
The Eleventh Circuit dismissed the insurer's appeal because the underlying Florida wrongful-death case had already settled, removing the live dispute and leaving no jurisdiction for the court to decide the duty question.
Mt. Hawley Insurance Company’s effort to challenge its duty to defend and indemnify a contractor ended at the Eleventh Circuit after the underlying coverage dispute effectively disappeared when the parties settled the related state case, according to Insurance Business.
The dispute arose from a construction incident in which a worker was electrocuted while installing rebar. H&M Builders, LLC was a subcontractor on the project, and Mt. Hawley had issued H&M a commercial general liability policy in effect on the day of the accident. The worker’s estate sued H&M and other parties in Florida state court for wrongful death, alleging the worksite was not properly maintained.
Mt. Hawley defended H&M but reserved its right to contest its obligations. It later sought a federal declaratory judgment that it owed no duty to defend or indemnify, and the trial court ruled on the defense question in H&M’s favor, finding Mt. Hawley owed a duty to defend.
After Mt. Hawley filed an interlocutory appeal, the parties settled the Florida case before H&M answered. The state court dismissed the suit, the trial court dismissed the indemnity claim as moot, and it entered final judgment against Mt. Hawley. The appeals court dismissed the federal appeal for lack of jurisdiction, citing that no live controversy remained, the trial court’s order lacked injunctive qualities, and a final judgment meant any appeal properly belonged to that judgment, the outlet said.