Shunn Construction, Inc. v. Royal Insurance Co. of America

McDEVITT, Chief Justice.

I

BACKGROUND AND PRIOR PROCEEDINGS

The Central Orchard Sewer District (COSD) filed a complaint against Shunn Construction Co. (Shunn), in federal district court. COSD alleged that Shunn breached a contract between COSD and Shunn for the construction of a sewer in Lewiston, Idaho. Among the deficiencies in Shunn’s performance listed in COSD’s complaint was “[i]n-stallation of pipe which had been subject to rock protrusions and indentations, which either has caused pipe breakage, leaks and substantial health hazards or has and will in the future cause the same.” The…