News & Analysis as of

Construction Defects Faulty Workmanship

Seventh Circuit Finds Faulty Work Not a Covered “Occurrence”

In Allied Prop. & Cas. Ins. Co. v. Metro North Condo. Ass’n, No. 16-1868, 2017 U.S. App. LEXIS 4107 (7th Cir. Mar. 8, 2017), the Seventh Circuit had occasion to consider whether claims of faulty workmanship could constitute...more

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

by Carlton Fields on

As this blog has reported, a line of cases deciding coverage disputes over faulty workmanship runs against (or, at least, around) a basic rule for interpreting insurance policies. Under that rule, the scope of coverage is...more

New Jersey Supreme Court Holds CGL Policies Cover Developer/General Contractor for Damage Caused by Subcontractor’s Faulty...

The New Jersey Supreme Court recently considered whether damage caused by a subcontractor’s faulty workmanship constitutes property damage caused by an occurrence under a developer/general contractor’s commercial general...more

Kentucky Court of Appeals Denies CGL Coverage For Damage To Property Other Than Insured’s Work

In Acuity v. Martin/Elias Props., LLC, 2016 Ky. App. Unpub. LEXIS 237 (Ky. Ct. App. Mar. 25, 2016), the Court of Appeals of Kentucky held that commercial general liability insurer Acuity did not owe coverage for a claim that...more

No Contractor Is An Island: Florida Court Narrowly Applies “Your Work” Exclusion

by Pullman & Comley, LLC on

When an insurer issues a Commercial General Liability policy to a contractor, the policy typically excludes coverage for the cost of repairing or replacing the contractor’s own defective work, but covers the cost of repairing...more

Florida Court Holds No Duty to Defend Construction Defect Suit

In its recent decision in Core Construction Services Southeast v. Crum & Forster Specialty Ins. Co., 2015 U.S. Dist. LEXIS 163695 (S.D. Fla. Dec. 7, 2015), the United States District Court for the Southern District of Florida...more

Insurance Recovery Law - December 2015

Court Rejects Attempt to Broaden "Employer's Liability" Exclusion, Requiring Coverage - Why it matters: A New York federal court recently ruled that an "Employer's Liability" exclusion in a CGL policy applies only when...more

Sixth Circuit: A Michigan Collapse Extension Overrides Exclusions for Cracking and Defective Design

by Cozen O'Connor on

In Joy Tabernacle — The New Testament Church v. State Farm Fire & Cas. Co., 2015 WL 3824733, 2015 U.S. App. LEXIS 10707 (6th Cir., Jun. 22, 2015), a unanimous panel of the federal Court of Appeals recently held that a...more

U.S. District Court in Pennsylvania Dismisses Owner’s Claim Against Performance Bond Surety – Repeated Instances of Poor...

by Pepper Hamilton LLP on

Milton Reg’l Sewer Auth. v. Travelers Casualty & Surety Co., 2014 U.S. Dist. LEXIS 155419 (M.D. Pa. Nov. 3, 2014) - The United States District Court for the Middle District of Pennsylvania ruled that multiple...more

Whether faulty workmanship constitutes an "occurence" continues to be revisited by courts across the country

by Melito & Adolfsen on

Is there a shift in the longstanding majority view, including in New York, New Jersey and Connecticut, that construction defect claims do not constitute an occurrence when the damage is to the insured’s own work because it...more

Alabama Supreme Court Reverses Course, Finds Insurance Coverage for Faulty Workmanship Claims

Companies such as homebuilders, construction companies and contractors face significant financial risk from bodily injury and property damage claims arising from allegedly faulty workmanship or construction defects. Although...more

New York and New Jersey Hold Fast to No “Occurrence” for Faulty Workmanship Claims

by Nelson Brown & Co. on

During the past year, five state supreme courts (Alabama, Connecticut, Georgia, North Dakota and West Virginia) have found that faulty workmanship by a construction contractor or subcontractor can be a covered “occurrence.”...more

Alabama Supreme Court Clarifies Position on Construction Coverage Question: Damage to Contractor’s Work Resulting from Faulty...

by K&L Gates LLP on

In an important decision for policyholders in the construction business, the Supreme Court of Alabama recently clarified that Alabama law is in accord with the growing majority of jurisdictions finding coverage for property...more

Engineer Now Facing Both Criminal Negligence, OHSA Charges In Mall Collapse

by Dentons on

Police have laid criminal negligence charges against a professional engineer in relation to the Elliot Lake mall collapse in June 2012. The charges against professional engineer Robert Wood are two counts of criminal...more

Court Gets in Line with Majority of Jurisdictions on Faulty Products Coverage

A recent decision from an appellate court in Pennsylvania is good news for policyholders who manufacture products, as yet another jurisdiction joins the majority view that product manufacturers may be covered for damage that...more

Pennsylvania Court Holds Defectively Designed Windows and Doors May Give Rise to an “Occurrence”

by Cozen O'Connor on

On December 3, 2013, the intermediate Pennsylvania Court of Appeals decided Indalex, Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, and concluded that an “occurrence” under a commercial umbrella liability policy may...more

New Jersey Bill Would Compel Insurers to Cover Faulty Construction Work

by Nelson Brown & Co. on

The New Jersey Legislature has entered the ongoing national debate about whether faulty construction work is considered an “occurrence” under general liability insurance policies. Introduced on November 25, 2013, A. 4510...more

Cherrington et al. v. Erie Ins. Prop. & Cas. Co.: A New Direction in Commercial General Liability Interpretation in West Virginia

by Baker Donelson on

The West Virginia Supreme Court of Appeals has abandoned nearly five decades of holding that faulty workmanship is not an “occurrence” under commercial general liability (“CGL”) policies. On June 18, 2013, the West Virginia...more

Connecticut Supreme Court Determines Damage Caused by Unintended Faulty Work Constitutes Property Damage Resulting from an...

by K&L Gates LLP on

Jurisdictions are split over whether defective construction can give rise to an occurrence under commercial general liability insurance policies. Some jurisdictions have held that faulty workmanship cannot constitute the...more

Update On Coverage For Colorado Construction Defects – TCD & Colorado Pool

by Sherman & Howard L.L.C. on

Over the past few years, we have monitored the efforts of some in the insurance industry to deny coverage for construction defect claims brought by construction professionals. These insurers' assault on construction...more

On the Horizon for 2013: Pennsylvania Courts Struggle with Insurance Coverage for Construction Defect Claims

by Reed Smith on

In 2012, Judge Wettick of the Allegheny County Court of Common Pleas issued two decisions that have the potential to significantly limit the insurance coverage available to Pennsylvania contractors and construction companies...more

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