MHProNews has learned from Courthouse News Service Palm Harbor Homes (PHHMQ) is suing three insurers that refused to defend it from 15 disgruntled homeowners in Nevada going back to 2005 and 2006. Palm Harbor alleges American International Group (AIG) issued a commercial liability policy for a Palm Harbor entity in Florida for the period covering the purchase of eight of the homes, and the three subsequent lawsuits brought by the homeowners. Plaintiff argues it had to pay its own defense costs until the suits were settled in 2010. “Palm Harbor demanded that defendants immediately assume payment of ongoing defense costs and reimburse Palm Harbor for the amounts Palm Harbor had already paid over and above the self-insured retention amount,” the complaint states. “Defendants never denied coverage of the plaintiffs’ claims in the underlying lawsuit under the policy, however, defendants never assumed payment of Palm Harbor’s defense costs.” The Florida company filed for Chapter 11 bankruptcy protection in 2010, and Palm Harbor purchased its assets in 2011. Palm Harbor also sued Chartis Claims and American Home Assurance Co. Seeking actual and punitive damages for bad faith, breach of faith and fair dealing, breach of contract and failure to pay claims, Palm Harbor filed the suit in Dallas County Court.
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