SC Supreme Court Finds Insurance Coverage in Construction Defect Case

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The S.C. Supreme Court has clarified the issue of CGL coverage for damages associated with construction defects in a way that should prove helpful to contractors and owners.

As you may know, in January 2011 the SC Supreme Court issued its opinion in the Crossman case and found that water intrusion resulting from construction defects did not have "fortuity underpinnings" and was the natural consequence of the construction defect. Therefore, the Court found that the water intrusion resulting from a construction defect was not an occurrence under the policy and there was no coverage.

After rehearing the case, the Court issued a new opinion ("Crossman II") finding coverage.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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