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Insurer need not provide coverage where plaintiff's claims are reduced to fraud counts

JoAnn Wreford sued the developer of her condominium after the unit was subjected to flooding.  She joined several arguments in her complaint, including claims sounding in fraud and silent fraud.  The Court dismissed several of the counts, leaving for trial only claims that the developer had induced her to purchase condominium through fraudulently misrepresenting the suitability and drainage of the property.  The developer's insurer, Frankenmuth Mutual, then sought summary disposition, arguing that the remaining legal counts were intentional misconduct excluded from coverage.  The Court agreed that the allegations, if proven, did not constitute an "occurrence" under the policy and allowed Frankenmuth to withdraw from representing the developer.

Thompson O’Neil, P.C.
309 East Front Street
Traverse City, Michigan 49684
Toll Free: 1-800-678-1307
Fax: 231-929-7262