Opinion ID: 1669598
Heading Depth: 3
Heading Rank: 4

Heading: Royal's Defense as Supported by the Evidence

Text: Viewing the facts as alleged by Crowley in his affidavit, and as supported by the insurance policy, the VAIL report, and the letter denying coverage, we conclude that Royal can present a plausible defense at trial. Royal can plausibly prove that the contract excluded from coverage any loss or damage caused by deterioration, as well as any damage resulting from the use of [f]aulty, inadequate or defective... [construction or] [m]aterials used in... construction. Royal can plausibly prove that an independent engineer detected faulty or inadequate construction in the builder's failure to install better waterproofing mechanisms; that the same engineer detected inadequate materials in the construction of the facility in that the builder used interior-grade plywood as the subfloor, which was, by definition, inadequate for use as a subfloor; and that the sum of these failures and inadequacies resulted in the deterioration of the subflooring. Consequently, Royal could plausibly prove that the deficiencies in Crowne's subflooring were caused by events excepted from coverage in Crowne's policy with Royal. The fact that Royal's policy did not cover Crowne's loss would, if proven, constitute a complete defense. Therefore, Royal has shown the existence of a meritorious defense, as against an objection going only to the authenticity of some of its evidentiary support.