Faulty Workmanship

News & Analysis as of

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

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

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

Nebraska Appellate Court Gets Down to Earth to Hold That Faulty Workmanship Standing Alone Is Not An “Occurrence”

The insurance and construction industries have disagreed about coverage claims involving faulty workmanship for many years. Contractors believe their CGL insurance policies should always cover property damage caused by...more

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

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

More Legal Developments for the Construction Industry in the Southeast

Alabama - The Alabama Supreme Court reversed itself and concluded that faulty workmanship can constitute an “occurrence” under a commercial general liability insurance policy which triggers coverage for the insured. In a...more

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

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

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...

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

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

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

The Construction Advantage

We hope you enjoy Bernstein Shur’s first edition of The Construction Advantage. This newsletter will provide you with insight into the current legal issues in construction, news and updates. We hope in this newsletter and...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

What’s in Store for New Jersey in 2014? Super Bowl XLVIII and Legislation Addressing the “Occurrence” Issue in the Construction...

The New Year might bring more to New Jersey than just the Super Bowl. Indeed, on November 25, 2013, the legislature introduced a bill before the New Jersey State Assembly, which, if enacted, would require general liability...more

Sixth Circuit Holds Faulty Workmanship Is Not An Occurrence

In its recent decision in Liberty Mutual Fire Ins. Co. v. Kay & Kay Contracting LLC, 2013 U.S. Dist. LEXIS 23587 (6th Cir. Nov. 19, 2013), the United States Court of Appeals for the Sixth Circuit, applying Kentucky law, had...more

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

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

Pennsylvania Appeals Court Confirms Insurance Coverage for Product Liabilities and Distinguishes “Faulty Workmanship”

Whether a construction defect constitutes a covered “occurrence” under a commercial general liability (“CGL”) policy has been the subject of a national debate among state courts in recent years. Armed with a small minority of...more

Indalex: The Pennsylvania Superior Court Rejects Insurers' Attempts To Deny Coverage for Negligence Actions Involving 'Faulty...

On December 3, 2013, the Pennsylvania Superior Court issued its opinion in Indalex Inc. v. National Union Fire Insurance Co. of Pittsburgh PA, holding that insurance coverage is available to product manufacturers for...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

Muddying the Waters on Policy Stacking Law: Perspectives on Insurance Recovery Newsletter – Summer 2013

In This Issue: - Federal Housing Finance Agency Proposes New Rules on Lender-Placed Insurance - J.P. Morgan Decision Curtails the Phantom “Restitution Defense” to D&O Coverage - Bad-Faith Claims...more

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

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

A Full 180 -- The West Virginia Supreme Court of Appeals' New Position on Liability Insurance and Defective Workmanship

Since 1965, the West Virginia Supreme Court of Appeals has consistently held that defective workmanship that caused bodily injury or property damage did not constitute an “occurrence” under a policy of commercial general...more

West Virginia Reverses Course, Concludes that Faulty Workmanship is Covered Under a CGL Policy

Last week, the Supreme Court of Appeals of West Virginia issued an opinion holding that faulty construction work qualifies as an “occurrence” under a CGL policy if it causes “bodily injury” or “property damage.” Cherrington...more

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

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

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