Litigation arose over whether a suit for misrepresentation and breach of contract arising out of an easement triggered a Commercial General Liability (CGL) insurer's duty to defend. Internal confidential communications...more
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
Some jurisdictions consider the ISO-form "bodily injury" definition to be ambiguous as to whether emotional distress requires physical harm to be bodily injury. Many insurers have amended bodily injury to expressly require a...more
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
In our January insurance update, we include three state cases addressing some less common situations. It’s not often that a pollution exclusion is interpreted in the context of an auto policy. But the South Dakota Supreme...more
In a case of first impression, the United States District Court for the District of Columbia (applying Illinois law) rejected a LEG3 exclusion as ambiguous. See S. Capitol Bridgebuilders “SCB” v. Lexington Ins. Co., 2023...more
We bring you our July Insurance Update. We begin with two cases about late notice. First, the Kentucky Supreme Court considers whether the notice-prejudice rule applies to claims-made-and-reported policies. Second, the...more
Co-Author: Jenna Davidson The United States Court of Appeals for the Third Circuit (“Appellate Court”) addressed in a May 31st Opinion an insurance coverage question arising out of hydraulic fracking services being employed...more
Courts took up some interesting insurance questions this past month. Here’s some we address in our June Insurance Update. When a government sponsored cyberattack infects computers worldwide, does the war exclusion apply? ...more
In a May 31, 2023, precedential decision, the United States Court of Appeals for the Third Circuit confirmed that under well-settled Pennsylvania law, claims of poor workmanship do not involve an “occurrence” required to...more
In two separate decisions handed down last month, the Third Circuit Court of Appeals re-affirmed that, under Pennsylvania law, claims against contractors for faulty workmanship do not constitute an “occurrence” and are...more
n late September 2022, Arizona’s Supreme Court issued a new opinion important for any person or company working in residential construction. The Court’s opinion in Zambrano v. M & RC II LLC, et al affirms the importance of...more
Third-party claims seeking damages for faulty workmanship that results in property damage are covered under general liability policies in most jurisdictions. Virginia is not one of them. A federal district court recently...more
If you were to look for a quick answer regarding whether a commercial general liability (CGL) policy covers damage resulting from faulty workmanship under Pennsylvania law, you’d likely come out believing the answer is...more
Insurers regularly argue that commercial general liability (“CGL”) policies are not performance bonds and therefore there is no coverage for claims seeking damages for defective or faulty workmanship. Insurers also argue...more
New York’s Comprehensive Insurance Disclosure Act Amended- On February 24, 2022, New York’s Comprehensive Insurance Disclosure Act was amended to remove some of the more controversial requirements, including that...more
The construction industry operates under the constant spectre of claims seeking damages for defective or faulty workmanship. Fortunately, the law in most states treats these claims as covered under commercial general...more
In a recent decision touching on many interesting issues, North Carolina’s Court of Appeals effectively determined that, in all but the most obvious cases, expert testimony is required to establish a failure to perform...more
Assemblyman Gary S. Schaer of New Jersey’s 36th District introduced a proposed bill, A.B. 1075, that would require all commercial liability insurance policies issued in New Jersey to include “faulty workmanship” within the...more
On Oct. 28, 2021, the Nevada Supreme Court in Zurich American Insurance Company v.. Ironshore Specialty Insurance Company, 137 Nev. Adv. Op. 66, held that an insured can rely on extrinsic facts to show that an insurer has a...more
Awarding summary judgment to an insurer under both liability and directors & officers (D&O) coverage parts, a New Jersey trial court reaffirmed the principle that claims of defective workmanship without resulting “property...more
In a recent Arizona Court of Appeals case, Zambrano v. M & RC II LLC, 2021 WL 3204491 (7/29/2021), the Court of Appeals addressed the question whether a home builder’s attempt to disclaim implied warranties of workmanship and...more
On March 17, 2021, the Eastern District of Pennsylvania issued its decision in Estate Chimney & Fireplace v. IFG Companies & Burlington Insurance Company, 2021 U.S. Dist. LEXIS 50360 (E.D. Pa. March 17, 2021), finding that an...more
In Saunders v. Florida Peninsula Insurance Co., a Florida appellate court recently determined whether a faulty workmanship exclusion in a homeowner’s policy applied to a property loss caused by a contractor....more
On September 14, 2020, Division One of the Washington Court of Appeals provided clarification in the case of Lake Hill Investments, LLC. V Rushforth Construction Company, Inc., Case No. 79116-8-I, on how the Spearin Doctrine...more