Fresard v. Michigan Millers Mutual Insurance

Plaintiffs are builders who carry comprehensive general liability insurance policies with defendant. When a lawsuit for damages was brought against plaintiffs by William Harding and Delphine Harding, as purchasers, arising out of a building contract for the construction and sale of a new house, a dispute arose between plaintiffs and defendant concerning coverage under the insurance policy. Defendant undertook the defense under a reservation of rights understanding. During trial, this claim against plaintiffs was settled for $50,000, one-half of which was contributed by each, i.e., by…