A Florida condominium association attempted to recover $8.5 million from a CGL insurer under a “Coblentz” agreement, a legal mechanism that allows a claimant to pursue – based on an assignment in settlement – recovery from the insurer of an insured party for a settlement reached with the insured party when the insurer has refused to defend the original insured.

The case stemmed from construction defects at a condominium project in Jacksonville, Florida. The project, constructed from 2005 to 2008, faced issues when the original general contractor defaulted and was replaced. The condominium association discovered defects years later, including problems with dampproofing, masonry work, garage screens, and balcony railings.