J & C Moodie Properties, LLC v. Deck

J & C Moodie Properties, LLC hired Haynie Construction, owned by Kyle Haynie, as general constructor to construct a building for Moodie’s farm equipment dealership. Scottsdale insured Haynie under a policy that was in effect when the building project was completed. Moodie later sued Haynie, asserting construction defect claims regarding the construction project. Scottsdale denied coverage. Haynie and Moodie subsequently filed a stipulated settlement, under which Haynie assigned its rights and interest in the Scottsdale policy to Moodie. The district court then entered judgment in the case against Haynie. Thereafter, Moodie filed a fourth amended complaint requesting a declaratory judgment against Scottsdale, claiming that Scottsdale had breached its duty to defend, Haynie had entered a stipulated judgment due to Scottsdale’s failure to defend, the stipulated judgment was reasonable, and Scottsdale was liable for the stipulated judgment. The district court ruled in favor of Moodie on all issues. The Supreme Court affirmed in part, reversed in part, and remanded, holding that the district court (1) correctly found that Scottsdale breached its duty to defend Haynie; (2) erred by ruling that there were no grounds for a reasonableness hearing regarding the stipulated judgment; and (3) erred by ruling that Scottsdale was not entitled to discovery regarding the reasonableness determination. View "J & C Moodie Properties, LLC v. Deck" on Justia Law