Date of Case Completion:
February 18, 2022
Category:
Insurance Coverage Dispute / Real Estate / Declaratory Judgment
Summary:
McLemore Law PLLC secured a favorable ruling for Allstate in a declaratory judgment action concerning real estate disclosure-related claims. The U.S. District Court ruled that the policy did not provide coverage for alleged easement and drainage issues disclosed during the sale of the Morses’ home, resulting in judgment on the pleadings in Allstate’s favor.
Description:
Case Name: Allstate Vehicle and Property Insurance Company, and Allstate Indemnity Company v. David and Leann Morse
Court: U.S. District Court for the Eastern District of Tennessee, Knoxville Division
Case No.: 3:21-cv-00284
The dispute arose after David and Leann Morse sold their home in 2020. The purchaser later filed suit, alleging the Morses failed to disclose easement and drainage issues during the transaction. In response, the Morses sought defense and indemnity under their Allstate homeowners and personal liability policies.
Representing Allstate, McLemore Law PLLC filed a declaratory judgment action asserting that the claims were not covered, as the damages alleged did not arise from bodily injury or property damage as defined by the policies.
On February 18, 2022, the court granted McLemore Law’s Motion for Judgment on the Pleadings, finding that the coverage did not extend to the type of damages alleged by the homebuyer. As a result, Allstate had no obligation to defend or indemnify the Morses in the underlying lawsuit.