News & Analysis as of

“California’s Right To Repair Act Is Not A Homeowner’s Exclusive Remedy When Construction Defects Cause Actual Property Damage.”

The California Court of Appeals recently issued two decisions holding that California’s Right to Repair Act (“SB 800”) is not the exclusive remedy for a homeowner seeking damages for construction defects that have also...more

Alabama Joins Recent Trend of States Finding Defective Work May Be Covered Under a Commercial General Liability Policy

The Supreme Court of Alabama recently held in Owners Ins. Co. v. Jim Carr Homebuilder, LLC that a contractor’s commercial general liability (“CGL”) policy provided coverage for property damage caused by the defective work of...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

Insurance Coverage – Duty to Defend – Construction Defects

Regional Steel Corporation v. Liberty Surplus Insurance Corporation - Court of Appeal, Second Appellate District (June 13, 2014) - There has been a split of decisions in California as to whether incorporation of...more

Policyholders Must Be Vigilant for Construction Defect Exclusions, Including For Impaired Property to Combat Insurance Companies’...

Continuing the most recent trend in coverage litigation, insurance companies are increasingly engaging “Big Law” firms to develop legal arguments for narrower interpretation of their policies when troublesome claims threaten...more

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

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

New Jersey Bill Would Compel Insurers to Cover Faulty Construction Work

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

One Year Later, Superstorm Sandy Still Offers Viable Recovery Opportunities for Insurers

The one-year anniversary of Superstorm Sandy serves as a reminder to property insurers that key deadlines are approaching that can directly affect recovery efforts. Viable subrogation opportunities still exist, but carriers...more

California Appellate Court Expands Rights to Homeowners in Construction Defect Cases beyond Remedies Provided in the California...

On August 28, 2013, the California Appellate Court (Fourth District) issued its ruling in the case of Liberty Mutual Insurance Company v. Brookfield Crystal Cove LLC (Case No. GO46731). Liberty Mutual filed suit against...more

Under Construction - September 2013: Utah’s Economic Loss Rule

In Utah, a plaintiff must generally in be in privity with the “original contractor, architect, engineer or real estate developer” to bring an “action for defective design or construction.” Utah Code Ann. §78 B-4-513(4). This...more

A Construction Defect Insurance Carrier Need Only Demonstrate That Another Insurance Carrier's Policy May Potentially Cover The...

A California Appellate Court recently clarified the burden of proof for an insurance company seeking contribution from another insurance company in settlement of a construction defect action. When a company involved in...more

Rogers Towers: Construction Defects: The Duty To Preserve Evidence Of The Defects

Stop! Before you make those repairs, there are some things you should consider. Otherwise, you could find yourself down the road facing claims that your repairs destroyed evidence of the defects....more

Georgia Supreme Court Holds Defective Work Is An Occurrence

In Taylor Morrison Servs. v. HDI-Gerling Am. Ins. Co., 2013 Ga. LEXIS 618 (July 12, 2013), the Georgia Supreme Court addressed whether a construction defect claim constitutes an “occurrence” for purposes of satisfying the...more

Legal Alert: Georgia Recognizes Defective Construction as an "Occurrence" for Liability Insurance Purposes

The highest court in Georgia has recently added that jurisdiction to the growing list that considers defective construction, including defects in the work of a general contractor, to be an “occurrence” under the general...more

Georgia Supreme Court Rules Construction Defects Satisfy CGL Policy's 'Occurrence' Requirement

Homeowners sued their homebuilder alleging that the concrete foundations of their homes were improperly constructed. As a result, it was alleged that the foundations were failing, and the defects in the foundations had caused...more

West Virginia’s High Court Holds Defective Workmanship Causing Bodily Injury or Property Damage Does Constitute an “Occurrence”...

West Virginia has left the shrinking minority of states still precluding coverage for bodily injury and property damage claims arising out of defective workmanship....more

Connecticut Supreme Court Rules on Issues Involving Commercial General Liability Policies

In Capstone Building Corporation v. American Motorists Insurance Company, 308 Conn. 760 (June 11, 2013) (SC 18886), the Connecticut Supreme Court answered three questions of Connecticut insurance law certified from the...more

When Does an "Occurrence" Occur?

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

Introducing Construction Defect Coverage Quarterly, and an Analysis of “Occurrence” in Defect Coverage Actions

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

Colorado Federal Court Applies Builder’s Risk Exclusion and Policy Endorsement to Preclude Coverage for Underlying Construction...

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

Is Defective Construction an “Occurrence”? The Answer Isn’t So Concrete Construction Defect Coverage Quarterly

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

Construction And Procurement Law News- 2012 Fourth Quarter

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

Insurance Coverage: January 2013

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

Ohio Supreme Court Rules that Claims of Defective Workmanship Against a Builder Do Not Constitute an Occurrence Under a CGL Policy

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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