The Pennsylvania Supreme Court has ruled that a settlement agreement between the University of Connecticut and a builder over alleged construction defects on the school’s campus was ambiguous as to whether the parties released their own insurers from potential coverage claims, meaning the Commonwealth Court must now look beyond the language of the agreement at the parties’ intent.
The justices, hearing the case on direct appeal, ruled 6-1 to reverse a Commonwealth Court ruling that found the settlement agreement clearly and unambiguously precluded plaintiff Suffolk Construction Co. from seeking indemnity from its insurer, Reliance Insurance, for $800,000 it paid out of pocket toward a $3.3 million settlement with UConn.
