The Hanover Insurance Company v Beazer Homes Investment Corporation, Inc.
Insurance Company Seeks Declaratory Judgment that it is not obligated to Defend Beazer Homes in Fraudulent Home Sales
A class action lawsuit has been filed in the Southern District Court of Indiana against Beazer Homes Investment Corporation, Inc. Hanover Insurance Company seeks a declaration that the it is not obligated or required to defend and indemnify Beazer Homes as an insurer because of Beazer's alleged fraudulent activity.
Specifically, the complaint alleges that the Hanover Insurance Company entered into an agreement to provide insurance to Beazer Homes. However, it was later discovered that the homeowners who purchased homes from Beazer brought a lawsuit claiming that Beazer:
• Made fraudulent representations to homeowners regarding the quality, standard and grade of the model homes the plaintiffs purchased
• Made incorrect or false representations concerning the amount of their monthly payments for the homes
• Breached the agreement of sale because the homes contained defects
• Made various representations of warranty
• Breached implied warranties of habitability and fitness in that the homes that were purchased were not habitable or were in defective condition
Because of the alleged dishonesty on the part of Beazer, Hannover seeks to void the insurance relationship.
