Harbor Insurance Co. v. Urban Construction Co. And Augusta Court Co-Owners Association, Inc., Urban Construction Co.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

This is a dispute between a commercial insurer and its insured. The insured, Urban Construction Co., was held liable for damage caused by defects in its condominium project. Harbor Insurance Co. held an umbrella policy during construction and, relying on their diversity of citizenship, sought a declaration from the federal courts that it had no duty to indemnify Urban. Urban counterclaimed for damages. The district court granted summary judgment to Harbor.

Harbor sold twelve-month umbrella, or excess liability, policies to Urban for three successive…