McShane Construction Co. v. Gotham Insurance Co.

McShane filed suit against Gotham for failing to pay its insurance claim related to the alleged improper installation of a fire protection and suppression system by one of McShane's subcontractors, Mallory. The Eighth Circuit affirmed the district court's grant of Gotham's motion to dismiss for failure to state a claim. The court held that McShane's statutory claims were properly dismissed because neither rests upon a private right of action; McShane failed to state a claim for which relief can be granted with regard to its breach of contract theories where McShane failed to allege a legal obligation to pay any judgment covered under the terms of the policy; and McShane failed to state a claim upon which relief could be granted based upon waiver or estoppel. View "McShane Construction Co. v. Gotham Insurance Co." on Justia Law