MI Windows & Doors, LLC v. Liberty Mutual Fire Insurance

ORDER

STEVEN D. MERRYDAY, District Judge.

MI Windows & Doors and MI Home Products (collectively, MI Windows) are window and sliding-glass-door manufacturers that purchased commercial liability insurance from Liberty Mutual. In 2002, non-parties sued MI Windows in Alabama for defective windows and doors that caused water damage. Liberty Mutual defended MI Windows in the Alabama actions, which in 2006 settled for approximately $4.6 million — approximately $3 million for the damage tó the windows and doors and $1.6 million in “consequential damages” (damage that the windows and doors caused). In…