Luxury Homebuilder Blames Subcontractors in Insurance Dispute

Luxury home construction company Toll Brothers Inc. sued the insurers of several subcontractors that worked on a Texas house, seeking to recoup legal costs stemming from a dispute over construction defects.

The insurers had a duty to pay for Toll’s legal defense costs based on the subcontractors’ contractual obligations, Toll argued in a complaint filed Thursday in the US District Court for the Southern District of Texas.

A Texas homeowner alleged the house built by Toll had numerous construction defects—including water intrusion, mold, and improperly installed roofing materials—and sought over $1.5 million in damages.

Several of the defects in question ...