News & Analysis as of

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

Arizona Court of Appeals Confirms “Subcontractor Exception” to “Your Work” Exclusion Does Not Apply to Additional Insured General...

by Jaburg Wilk on

In Double AA Builders, Ltd. v. Preferred Contractors Insurance Company, LLC, --- P.3d ----, 2016 WL 7508079, *1 (Ariz. Ct. App. Dec. 30, 2016), the Arizona Court of Appeals reversed the trial court’s grant of summary...more

What a pain in the glass: The Supreme Court of Canada impacts construction and insurance industries

by Dentons on

Builders risk coverage extended to “service providers” and not just to those who “construct” - The Supreme Court of Canada’s recent decision, Ledcor Construction Ltd v. Northbridge Indemnity Insurance Co., 2016 SCC 37,...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

Massachusetts Court of Appeals Precludes Coverage for Drink Bottles Despite “Loss of Use” Exception to “Faulty Workmanship”...

by K&L Gates LLP on

Manufacturers, suppliers, and distributors of food products face significant business and litigation risks associated with food contamination and recall issues. Policyholders in this chain of production should be aware that...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

Massachusetts Court: Loss of Drink Product Caused By Faulty Workmanship And Design of Bottle Caps Not a Covered Ensuing Loss

by Cozen O'Connor on

Monday saw a unanimous panel of Massachusetts’ intermediate level appellate court reject a policyholder’s ensuing loss arguments. In H.P. Hood LLC v. Allianz Global Risks U.S. Ins. Co., 2015 Mass. App. LEXIS 175, 2015 WL...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

New Jersey Developer Wins on “Occurrence” and “Property Damage”; Appellate Division finds Subcontractors’ Faulty Construction...

by K&L Gates LLP on

The Superior Court of New Jersey, Appellate Division, has issued a very important decision for real estate developers and general contractors whose insurance companies have reserved rights or denied coverage for damage caused...more

Looking Backward: West Virginia Retroactively Imposes Coverage for Faulty Workmanship

by Carlton Fields on

A notorious moving target in the field of coverage litigation is an insurer’s responsibility under a commercial general liability policy for the policyholder’s faulty workmanship. The key question is usually whether the...more

Silica Dust Damage Held Barred by Pollution and Faulty Workmanship Exclusions in New York

by Cozen O'Connor on

Building construction frequently generates silica dust, a substance that can cause lung disease and other respiratory problems.  Abrasive sand-blasting or jack hammering as well as concrete drilling and block cutting can lead...more

The Pennsylvania Superior Court Continues to Muddle the Answer to the Question of When Faulty Workmanship is an “Occurrence” Under...

by Reed Smith on

Pennsylvania courts continue to struggle with complex concepts underpinning when faulty workmanship can be an “occurrence” triggering coverage under Commercial General Liability (“CGL”) policies. In Kvaerner Metals Division...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

Apartment Complexity: Appellate Court Sorts Out Multiple Coverage Claims for Construction of Uninhabitable Residence

by Carlton Fields on

In QBE Ins. Corp. v. Adjo Contracting Corp. (N.Y. App. Div. 2d Dep’t Oct. 29, 2014), an intermediate appellate court in New York confronted cross-appeals involving 15 different insurers embroiled in multiple lawsuits,...more

Pennsylvania Supreme Court Denies Review of Faulty Workmanship Decision

Last week, the Pennsylvania Supreme Court let stand the appellate decision in Indalex, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., which held that mold related health problems and property damage allegedly...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

The Alabama Supreme Court Broadens the Definition of “Occurrence” in a General Contractor’s Commercial General Liability Policy in...

by Burr & Forman on

On March 28, 2014, the Alabama Supreme Court withdrew its September 20, 2013 opinion and substituted a new decision in Owners Ins. Co. v. Jim Carr Homebuilder, LLC, 2014 WL 1270629 (Ala. Mar. 28, 2013). In its new decision,...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

Pennsylvania Superior Court Finds Coverage Under CGL Policy For Product Defect Claims

Policyholders seeking defense costs for products liability claims received welcome support from a Pennsylvania appellate court which rejected an excessively restrictive view of the scope of coverage offered under commercial...more

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