Seventh Circuit Finds Coverage for Insured Contractors That Built Defective Homes


In Trinity Homes LLC v. Ohio Cas. Ins. Co., ___ F.3d___, 2010 WL 5174967 (7th Cir. (Ind.) December 22, 2010), the U.S. Court of Appeals for the Seventh Circuit considered whether faulty subcontractor work was “property damage” caused by an “occurrence” under commercial general liability (CGL) policies issued to plaintiffs by Ohio Casualty, and whether underlying settlements for partial limits constituted “exhaustion” under umbrella policies issued by Cincinnati Insurance Company (CIC). The district court granted summary judgment in favor of Ohio Casualty and CIC on these issues, but the Seventh Circuit Court of Appeals reversed.

In reviewing the first issue, the court considered Sheehan Construction Co. v. Cont’l Cas. Co., 935 N.E.2d 160 (Ind. 2010), an Indiana Supreme Court case that had not yet been decided at the time the district court granted summary judgment. That case made it clear that a standard CGL policy covers a subcontractor’s unintentional shoddy workmanship. Thus, the court reversed the summary judgment for Ohio Casualty in light of the new precedent.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Sedgwick LLP | Attorney Advertising

Written by:


Sedgwick LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.