Texas Contractor and Travelers Insurance to Mediate Suit

Earlier this month Centex Homes, a Texas Homebuilder, and Traveler’s Insurance group began moving towards mediating their dispute over whether a Travelers policy allows the insurer (Travelers) to choose the defense counsel in a construction defect suit.

Moving towards a resolution

Travelers and Centex Homes have agreed to a mediation session sometime before July 26th to settle claims against the builder. Travelers filed the suit in October, indicating that the builder demanded to name its own defense attorneys in a property damage case AND for Travelers to incur the cost of said attorneys.

According to Travelers, Centex claimed that conflicts exist between the previously hired counsel and the one appointed by Travelers. Centex’s position on the matter is that if Traveler’s wants to continue with the Travelers appointed counsel, Travelers must agree to pay the entire defense cost, and not split it up amongst other insurers whom are also part of the defense.

Travelers maintains that this is how it handles disputes, and though if Centex cannot fall in line with these procedures, they will provide no coverage.

While that remains to be seen, what we do know is that the two sides have agreed to discuss this matter with a mediator.

If you feel as though you’ve been victim to a construction defect, it may be in your best interest to seek counsel outside that of your builder or the builder’s insurance.