Oregon Court of Appeals Holds “No Duty to Defend” in Insurance Ruling

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On April 6, the Oregon Court of Appeals issued its decision in State Farm Fire and Casualty Company v. American Family Mutual Insurance Company. The case pertains to whether an insurer has a duty to defend where the complaint against the policyholder alleges defective construction of a building’s moisture protection system, but does not allege resultant water intrusion and damage. The court held that where such “special damages” are not specifically pled, there is no duty to defend.

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