The Court also rejected Insurer's other arguments, including that it had no duty to defend because the contractor's lien could not legally be equal or superior to the mortgage, because applicable Indiana law gives priority to commercial construction mortgages over all later-recorded liens. See Ind. Code § 32-28-3-5(d). Pointing out that the insurance policy required defense of all claims attempting to enforce a lien as having priority over or parity with the mortgage, the Court ruled that Insurer had a contractual duty to defend irrespective of the merits of such claims.
Ralph T. Wutscher
McGinnis Wutscher LLP
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