No Coverage for Counterclaim Arising from Insured's Faulty Workmanship

Construction worker in funny pose

Attorney Tred R. Eyerly analyzes Am. Family Mut. Ins. Co., S.I. v. Mid-American Grain Distributors, LLC.

August 3, 2020
Tred R. Eyerly - Insurance Law Hawaii

The Eighth Circuit found there was no coverage for the insured's faulty workmanship. Am. Family Mut. Ins. Co., S.I. v. Mid-American Grain Distributors, LLC, 958 F.3d 748 (8th Cir. 2020).

Mid-American contracted with Lehenbauer to design and construct a grain storage and distribution facility for Lehenbauer. Before the work was competed, Lehenbauer terminated Mid-American's services. Mid-American then sued Lehenbauer for breach of contract. Lehenbauer counterclaimed against Mid-American, alleged breach of "implied duties of workmanlike performance and fitness for a particular purpose" and negligence. Mid-American tendered the counterclaim to American Family. American Family accepted the tender under a reservation of rights, but sued Mid-American for a declaratory judgment.

The district court granted American Family's motion for summary judgment, concluding that the counterclaims did not allege an occurrence.

Mr. Eyerly may be contacted at


Arrange No Cost Consultation

Subscribe to Construction Defect Journal

Construction Defect Journal Archives - Recent CD News for Construction Claims Professionals


Construction Defect Journal is aggregated from a variety of news sources, article submissions, contributors, and information from industry professionals.

No content on this site should be construed as legal advice or expert opinion. By viewing this site you agree to be bound by its terms and conditions


Copyright 2020 - Construction Defect Journal – All Rights Reserved