Two federal courts in Denver recently addressed a fundamental question that exists in almost every construction defect case - when did the property damage that gives rise to liability, and the insurer's obligation, occur? ...more
As noted in our previous installment of CDCQ, the “occurrence” issue is one of the most hotly litigated topics in construction defect coverage cases. This last quarter was no exception. Two recent cases addressing this issue...more
After a spate of bad decisions for policyholders on whether general liability policies can ever provide coverage for construction liabilities, three courts, in the past few weeks, have done an about-face, holding that there...more
One of the most frustrating events for a residential homeowner, or a commercial property owner, is the day that they find construction defects on their property. From that time forward, the steps that are taken by the...more
In D.R. Horton, Inc.—Denver v. Mountain States Mutual Casualty Co., No. 12-cv-01080 (February 25, 2013), another U.S. District Court judge for the District of Colorado determined a liability insured seeking defense costs from...more
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
In its recent decision in Lukes v. Mid-Continent Cas. Co., 2013 U.S. Dist. LEXIS 17979 (D. Mont. Feb. 11, 2013), the United States District Court for the District of Montana had occasion to consider the application of the...more
Through its recent opinion in Westfield Ins. Co. v. Custom Agri Systems, Inc., 2012 WL 4944305 (Ohio Oct. 16, 2012) (“Westfield”), the Ohio Supreme Court joined the majority of states in holding that faulty construction work...more
Even where insureds clear the “property damage” and “occurrence” hurdles to finding coverage for construction defect claims under liability insurance policies, additional coverage obstacles remain. Consider the “business...more
In a unanimous decision, the Washington Supreme Court has approved of contractual clauses broadly defining the scope of how and when causes of action may be asserted. The case, Washington State Major League Baseball Stadium...more
One of the largest issues litigated in today’s construction defect coverage actions is whether defective construction constitutes an “occurrence” (and therefore, may be covered) under liability insurance policies. Standard...more
In this issue: - Ninth Circuit: Underbids Can Constitute False Claims - State Courts Limit CGL Coverage for Property Damage Arising From Defective Construction - Construction Contractor Prevails in...more
Beacon Residential Community Association v. Skidmore, Owings & Merrill, LLP Court of Appeal, First District (December 13, 2012) The First Appellate District reversed a judgment in favor of design professionals and...more
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
Developers and general contractors would like to avoid litigating construction defect claims brought by condominium homeowner associations. There is a way to do this. ...more
In Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP (--- Cal.Rptr.3d ----, Cal.App. 1 Dist., December 13, 2012), a California court of appeal found that a homeowners association could seek damages...more
There were no significant decisions of the Supreme Court related to coverage this past quarter. The Courts of Appeal have provided us with several more decisions on contribution and subrogation. The following are brief...more
We are often asked by condominium corporations whether an appeal of Tarion’s final decision letter will prevent them from commencing a separate civil action with respect to the same deficiencies....more
In This Issue: Letter from the Editor; Colorado Construction Law Developments in 2012; Arizona Court of Appeals Issues Decision Related to the Application of the Statute of Repose and Economic Loss Doctrine for...more
On December 4, 2012, the Arizona Court of Appeals issued a decision in Sullivan v. Pulte Home Corporation that will have significant implications in the construction industry. The case revolved around a home built by Pulte in...more
While Colorado’s General Assembly passed no significant legislation affecting construction law in 2012, the Colorado Court of Appeals handed down a number of significant rulings....more
In the case of American Home Assurance Co. v. Trumbull Corp., No. GD-11-006886 (Ct. Com. Pl. Allegheny County, Oct. 10, 2012), the court granted summary judgment in favor of two excess general liability insurers on a matter...more
On October 12, 2012, the Ohio Supreme resolved a longsimmering conflict among Ohio’s intermediate appellate courts by answering the following certified question: Are claims of defective construction/workmanship brought...more
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