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Jul 15, 2024

Successful Defense in Construction Dispute Garnishment


Plaintiff homeowners sued their former contractor for alleged faulty construction work. The insured contractor failed to notify our insurance client of the lawsuit, or the subsequent default judgment entered against it. Subsequently, the Plaintiffs pursued a garnishment action against our client, seeking to collect more than $235,000 in accordance with the default judgment.  The matter proceeded to a bench trial in the District Court of Pratt County, Kansas.  After submitting pre-trial briefs, Baker Sterchi appeared on behalf of our insurance client, arguing that the insurance did not provide coverage because our client was prejudiced by the contractor's lack of notice, thereby denying them the opportunity to evaluate or defend against the claims.  The Judge agreed with our argument, denying Plaintiffs’ Motion for Judgment Against Garnishee.