Underwriters Win Significant Victory Over Beazer Homes

FHAM represented Certain Underwriters at Lloyd’s, London in their recent victory over Beazer Homes in the Superior Court of Fulton County. Beazer is a Fortune 500 Company and is one of the top residential homebuilders in America. Beazer filed suit against Certain Underwriters contending that its insurance broker successfully negotiated an endorsement to add three newly acquired companies to Underwriters’ excess liability insurance contract.


Certain Underwriters moved for summary judgment because a condition of the endorsement to add the newly acquired companies was for the parties to agree to the wording of a known loss exclusion, which was never done. Beazer contended that by considering several documents the court should find an enforceable written contract existed and that any ambiguity as to the wording of the known loss exclusion in that contract should be construed against Certain Underwriters.


The trial court granted Certain Underwriters’ Motion for Summary Judgment, finding that Beazer and Underwriters attempted for several years to agree to language for the wording of a known loss exclusion, and despite repeated attempts, the parties were unable to agree to the language of the exclusion. The court stressed that the testimony from Beazer’s insurance broker who negotiated the coverage showed that the parties never agreed on the wording of a known loss exclusion. In addition, Beazer’s insurance brokers who negotiated the coverage testified that there was no way for this Court to know the wording of the known loss exclusion to be agreed by the parties. Thus, the trial court found there was no written agreement to a known loss exclusion.


Bob McLaughlin and Terry Howell led the representation of Underwriters, with the assistance of several associates, including Andy Diamond and Jonathan Kramer, and paralegals Pam Bader and Jennifer Hronek.