News & Analysis as of

Construction Defects Property Damage Subcontractors

Carr Maloney P.C.

To Pay or Not to Pay “Rip and Tear” Damages

Carr Maloney P.C. on

Should a contractor’s Commercial General Liability (CGL) insurance policy cover the expense of uncovering defective work causing damage to the owner’s property as well as the costs of exposing or accessing damaged building...more

Hinckley Allen

Contractors, Beware: General Liability Insurers Wrongfully Denying Claims for Damage Caused by Defective Subcontractor Work

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As a contractor, you are familiar with working together with subcontractors — delegating project scope as part of the overall job. However, when a subcontractor’s work is defective, who is liable for the damage?...more

Lasher Holzapfel Sperry & Ebberson PLLC

Do I Have a Claim Against my Contractor? Prelitigation Notice Requirements for Residential Defect Claims in Washington

When faced with a residential construction defect problem—such as water intrusion, poor workmanship, or material/design deficiencies—Washington homeowners are often left wondering whether they have a claim, who is at fault...more

Pillsbury - Policyholder Pulse blog

Recent Illinois Supreme Court Decision on Construction Defect Claim Is a Perfect Holiday Gift for Policyholders

The Illinois Supreme Court handed down a big win for policyholders just in time for the holidays. In Acuity v. M/I Homes of Chicago, LLC, the court joined the mainstream of jurisdictions and reversed years-old precedent that...more

Bradley Arant Boult Cummings LLP

Coverage for Defective Work? Michigan Joins Majority

Michigan has joined the majority of jurisdictions in holding that a general liability policy may provide coverage for claims for property damage allegedly caused by the defective work of a subcontractor. In a unanimous...more

Sheppard Mullin Richter & Hampton LLP

Court Finds That “Care, Custody Or Control” Exclusion Did Not Negate Coverage For General Contractor Who Shared Jobsite...

McMillin Homes Constr., Inc. v. National Fire & Marine Ins. Co., 35 Cal.App.5th 1042 (2019); Fourth Appellate District Court of Appeal, Division One, Case No. D074219 (June 5, 2019). McMillin Homes Construction, Inc....more

Spilman Thomas & Battle, PLLC

A Case to Watch: Brayman v. Westfield Insurance

Pennsylvania law suggests construction defects generally are not considered an "occurrence" under most CGL insurance policies because defects are not true accidents, e.g., a fortuitous event. However, an exception generally...more

Bricker Graydon LLP

Got coverage? What to consider in the wake of the Ohio Supreme Court’s ruling on Ohio Northern University v. Charles Construction...

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On October 9, 2018, in Ohio N. University v. Charles Constr. Servs., Inc., Slip Opinion 2018-Ohio-4057, the Ohio Supreme Court ruled that property damage caused by a subcontractor’s allegedly defective work was not covered...more

Pillsbury - Policyholder Pulse blog

Ohio Supreme Court Finds Subcontractor’s Faulty Workmanship Causing Damage to the Work Itself Not Covered under CGL Policy

Last week, the Ohio Supreme Court unfortunately narrowed the scope of coverage for a subcontractor’s faulty workmanship. The court held in Ohio Northern University v. Charles Construction Services, Inc. that faulty...more

Cohen Seglias Pallas Greenhall & Furman PC

Construction in Brief: 2018 Volume 2

Pulling the Continuous Trigger: Insurance Policies and Progressive Property Damage in New Jersey - When a property owner claims damages due to defective construction, the first step for a contractor is to notify its...more

K&L Gates LLP

The Tenth Circuit’s Prediction: New York State Likely to Follow Trend Recognizing Damages Caused by Subcontractor’s Faulty Work is...

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The United States Court of Appeals, Tenth Circuit recently issued a favorable decision for policyholders finding property damage arising from a subcontractor’s faulty work arose from an accidental “occurrence” under New York...more

Proskauer - Insurance Recovery & Counseling

New York Insurance Law: Under Construction

Imagine you hired a general contractor to renovate the master bathroom of your home. The general contractor hired a subcontractor to do the plumbing work, but the subcontractor botched the job, resulting in a massive leak...more

White and Williams LLP

Top Developments – February 2017

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JP Energy Marketing, LLC v. Commerce & Industry Insurance Company, et al., No. 115285, 2018 Okla. LEXIS 11 (Okla. Feb. 5, 2018) - Oklahoma Supreme Court in a case of first impression authorizes an award of appeal-related...more

Farella Braun + Martel LLP

State Appeals Courts Rule on ‘That Particular Part’ Exclusions

Two recent cases from separate California state courts correctly interpret the phrase “that particular part” and apply it in its intended narrow sense. This is good news for contractors and is in contrast to some recent...more

Cozen O'Connor

New Jersey Court: Continuous Trigger Ends When Nature of Damage Is Known

Cozen O'Connor on

Last week, the New Jersey Appellate Division issued a decision that may have a significant impact on insurance coverage for progressive property damage claims in the state. In Air Master & Cooling, Inc. v. Selective Ins. Co....more

Cole Schotz

NJ Courts Continue Expansion Of Insurance Coverage For Construction Defects: “Continuous Trigger” Doctrine Applied

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New Jersey courts are continuing their trend of extending insurance coverage for third-party construction defect claims. Following last year’s NJ Supreme Court decision in Cypress Point Condo. Ass’n, Inc. v. Adria Towers,...more

Haight Brown & Bonesteel LLP

Third Appellate District Holds Right to Repair Act Precludes Certain Common Law Claims for Damages Caused by Construction Defects

In Gillotti v. Stewart (No. C075611, filed 4/26/17, publication order 5/18/17), the California Court of Appeal for the Third Appellate District held that the Right to Repair Act, Civil Code section 895, et seq. (the “Act”)...more

Dickinson Wright

Arizona Court of Appeals Rules That Coverage for an Additional Insured is no Greater Than Coverage Afforded a Named Insured - -...

Dickinson Wright on

In a matter of first impression, the Arizona Court of Appeals recently ruled that the “Your Work Exclusion” in a Commercial General Liability (“CGL”) insurance policy bars coverage for an additional insured when the only...more

Carlton Fields

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

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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

McCarter & English, LLP

New Jersey Supreme Court Affirms General Contractor’s Insurance Coverage for Consequential Damages Caused by a Subcontractor’s...

In an important recent decision, New Jersey joined a growing number of states holding that Insurance Services Office’s (ISO) 1986 comprehensive general liability (CGL) policy extends coverage to a property developer faced...more

Snell & Wilmer

“Rip and Tear” Damage Remains Covered Under CGL Policy as “Accident”—for Now.

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The Colorado Supreme Court has approved a settlement between the parties to an appeal of the 2012 Colorado Pool Systems v. Scottsdale Insurance Company Court of Appeals case, leaving that ruling intact. The ruling parses a...more

Manatt, Phelps & Phillips, LLP

Restrictions on Condominium Conversions

Now that the recession is beginning to become a memory of the past, the demand for housing is on the rise, and with it is the explosive interest in the multifamily market. As more Americans are choosing to marry later and...more

Carlton Fields

Construction Case Law Update - April 2015 #2

Carlton Fields on

Commercial General Liability Policies; “Injury-in-fact” vs. “Manifestation” as Trigger for Coverage; “Your Work” Exception – A CGL policy’s “Your Work” exclusion precludes coverage for defective installation when no damage...more

Troutman Pepper

Ninth Circuit Enforces Waiver of Subrogation Clause in Design/Build Agreement Against Post-Construction Property Insurer

Troutman Pepper on

Travelers Indem. Co. v. Crown Corr, Inc., 2014 U.S. App. LEXIS 21101 (9th Cir. 2014) - This action arose out of the construction of the University of Phoenix Stadium (the “Stadium”), home of the Arizona Cardinals. ...more

Bradley Arant Boult Cummings LLP

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

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