Madison - St. Clair Record

Tuesday, August 20, 2019

Insurance dispute over damage during Alton property renovation to be heard by Mudge

By Ann Maher | Jun 27, 2016

Madison County Circuit Judge William Mudge will preside at a hearing Wednesday on a plaintiff's motion to strike an insurer's defense posture that it is not responsible for losses involved in an Alton demolition.

Belle Street Properties LLC filed a suit in March against Scottsdale Insurance Company of Arizona and Krueger New Home and Remodeling Inc. of Alton, alleging negligence.

According to its complaint, Belle Street owned property at 314-316 Belle St. in Alton, that was undergoing demolition, renovation and construction work by Krueger. The suit says the property was covered by a builders risk policy, issued Feb. 23, 2015, by Scottsdale Insurance.

On March 19, 2015, the lawsuit states, the property was permanently damaged when an agent of Krueger was working on it and supporting walls moved, causing significant damage to the structure.

The plaintiff says Krueger was negligent for failing to take proper precautions while working on the foundation of the structure.

Belle Street, represented by David Dugan of East Alton, made a claim under the insurance policy but, according to the complaint, Scottsdale refuses to pay. The plaintiff considers the defendant in breach and violation of the terms of the policy.

From the insurance company, Belle Street Properties seeks no less than $50,000, plus statutory exemplary damages of 60 percent of its recovery, the cost of demolition of the structure or the cost to preserve it so as not to cause damage, attorney fees and court costs, and any other relief the court deems equitable. From the construction company, Belle Street seeks no less than $50,000, court costs and other relief the court deems equitable.

Scottsdale Insurance, represented by Patrick Bousquet of St. Louis, argues that it owes no obligation to Belle Street due to one or more policy exclusions involving renovation.

If it were to be found liable, Scottsdale asserts that Krueger would be obligated to reimburse it.

Krueger, represented by Christopher Leritz of St. Louis, denies negligence.

Madison County Circuit Court case number 16-L-326

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