COMMERCIAL LIABILITY INSURANCE

摘要

The U.S. District Court for the Western District of Missouri granted a summary judgment to the commercial general liability insurer in a suit against four of its insured apartment building owners who had been named as defendants in an underlying action for non-habitability brought against them by tenants, where the plaintiff sought rescission of the policies it issued to the defendants on the grounds that the defendants failed to disclose the existence of the underlying case on their insurance applications, they warranted that their representations on the applications were truthful, that the insurance policies were issued in reliance on the truth of such representations, and that such misrepresentations were material. North American Capacity Insurance Company v. KM TEH Realty 5, LLC, 2023 WL 2601220, Case No. 4:21-cv-00799-DGK (W.D. Mo. March 22, 2023). Ruskin Place Apartments in Jackson County, Missouri (owned currently by various entities, collectively "KM TEH Realty 1, LLC") was sued on October 29, 2019, by Ana Fuentes, Pedro Lopez, Tannett Washington, Tiyonna Watkins, Kelvin Lopez, and Chris Walter (collectively "Fuentes Class") in the Circuit Court for Jackson County ("Underlying Action"). Plaintiffs alleged that the Ruskin Place Apartments were unhabitable. The Fuentes Class later added the building and building manager "KM 8") as additional Defendants. On September 1, 2020, the circuit court awarded the Fuentes Class a $62,682,672.30 judgment.