Chubb Prevails Against Admiral On Construction Settlement

A federal appeals court affirmed a lower court ruling in a Chubb Ltd. unit’s favor on Tuesday in litigation filed by Admiral Insurance Co. over settlement of a construction claim.

The complex case arose from work on the construction of the Los Angeles Mission College Media Arts Center by engineering consultant Pasadena-based Gateway Science & Engineering Inc., according to court papers in Admiral Insurance Co. v. ACE American Insurance Co.

Gateway obtained a professional liability policy in connection with the project from Admiral that covered claims resulting from negligence in professional services, and a commercial general liability policy from Chubb unit ACE American, according to the ruling by the 9th U.S. Circuit Court of Appeals in San Francisco.

Admiral’s policy excluded claims covered by the CGL policy, while Ace’s policy excluded professional services claims. ‘Thus, by their terms, the policies did not overlap,’ the ruling said.