Otis Felder (Partner-Los Angeles, CA) obtained a ruling by the United States District Court for the District of Hawai'i in which the Magistrate Judge issued findings and a recommendation to grant Certain Underwriters at Lloyd’s, London, judgment against a construction company, confirming that there is no insurance coverage for claims related to a disputed construction project in Kauai. The ruling stems from allegations by homeowners regarding serious construction deficiencies in their custom retirement home. According to court findings, the insured’s insurance application contained material misrepresentations, failing to disclose known disputes and contractor defaults before the Lloyd’s policy was issued. The court also determined that coverage was barred for multiple independent reasons, including that the claims arose before the policy’s retroactive date; the allegations involved construction activities that were outside the scope of the covered “business activities" as defined by the professional liability policy covering design work; and other policy exclusions applied for workmanship, breach of contract, and known claims. If adopted by the district judge, the ruling will relieve Certain Underwriters at Lloyd’s from any duty to defend or indemnify the insured in connection with the project. The recommendation now moves to the district court for final approval.