Property Damage Construction Defects

News & Analysis as of

Contractor not liable following tunnel collapse

A recent Scottish case absolved a contractor from liability for the collapse of a tunnel as part of a hydroelectric scheme. This was because the contractor exercised reasonable skill and care, and did not guarantee the...more

California Court Holds Continuous Progressive Injury Exclusion Applicable to Construction Defect Claim

In its recent decision in Saarman Construction, Ltd. v. Ironshore Specialty Ins. Co., 2017 U.S. Dist. LEXIS 13633 (N.D. Cal. Jan 31, 2017), the United States District Court for the Northern District of California had occasion...more

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

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

Oregon High Court Clarifies How To Read the Four Corners of a Complaint

On December 8, 2016, the Oregon Supreme Court issued a decision, West Hills Development Co. v. Chartis Claims, Inc., 360 Or. 650 (2016), clarifying what allegations in a construction defect suit will implicate coverage under...more

Florida, Sebo and the Concurrent Causation Doctrine

The Florida Supreme Court recently issued a widely reported decision, Sebo v. American Home Assurance Co., which applied the concurrent cause doctrine in ruling that an all-risk homeowner’s insurance policy provides coverage...more

Competing Causes of Loss: Florida Supreme Court Issues Decision Applying The Concurrent Causation Doctrine

We have discussed on a number of occasions the issue of causation when there are multiple causes of loss, some covered and some not covered. Most jurisdictions apply what is known as the efficient proximate cause analysis...more

Florida’s Supreme Court Rules in Favor of Concurrent Cause Doctrine; Reverses Second District’s Application of Efficient Proximate...

In John Robert Sebo, etc. v. American Home Assurance Company, Inc., Supreme Court case number SC14-897, the Florida Supreme Court reversed a Second District Court opinion which found the efficient proximate cause doctrine...more

Florida Supreme Court Decides that Concurrent Causes Equal Coverage

It’s said that “defeat is an orphan,” but insurable losses often have multiple, concurrent causes. In some cases, one or more of those causes might be outside the scope of coverage, either by omission or exclusion. In Sebo v....more

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

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

Ohio Court Holds No Coverage for Misrepresentation Claims

In its recent decision in Lakeside Terrace Home Sales, Ltd. v. Arrowood Indem. Co., 2016 U.S. Dist. LEXIS 114828 (N.D. Ohio Aug. 26, 2016), the United States District Court for the Northern District of Ohio, had occasion to...more

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

Missouri Western District Court of Appeals Reminds Us to Pay No Attention to the Headings for the Revised Statutes

The Missouri Western District Court of Appeals recently affirmed a trial court’s issuance of summary judgment and, in the process, reminded practitioners that the bold faced headings in the Revised Statutes are not part of...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

New Jersey high court follows nationwide majority on CGL coverage for general contractor

On August 4, 2016, the New Jersey Supreme Court affirmed an intermediate court's ruling that where a subcontractor's defective work causes physical damage to other, nondefective parts of a general contractor’s project, it...more

Washington Court Finds Coverage For “Collapse” Is Not Set In Stone

As this blog has documented, the language of insurance policies evolves; it changes to address new risks, and it also responds to new interpretations of old policy provisions. Even if a policyholder maintains a long-standing...more

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

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

Contractual Waiver of Subrogation Applied to Owner’s Non-Work Property

After an insurer pays for a covered loss by an owner under a property policy the insurer generally has the right, whether under the common law, statute or the policy itself, to seek recovery of the payment from the...more

Common Law Indemnity Claim Affirmed on Justifiable Beliefs

Yesterday, the Arizona Court of Appeals issued an interesting opinion in Hatch Development v. Solomon. Hatch illustrated two key points in real estate and construction litigation: (1) a contractor’s indemnity does not always...more

Florida Court Enforces Four Year Statute of Limitations For Work Performed by Window Installer

In Brock v. Garner Window & Door Sales, Inc., 187 So. 3d 294 (Fla. Dist. Ct. App., 2016), plaintiffs, Lawrence and Laura Brock (“Plaintiffs”) sued the contractor that installed windows on their home after they sustained water...more

Montana Supreme Court Revisits General Liability Coverage for Construction Defect Claims

In its recent decision in Emplrs Mut. Cas. Co. v. Fisher Builders, Inc., 2016 MT 91 (Mont. Apr. 16, 2016), the Supreme Court of Montana had occasion to consider what constitutes an “occurrence” in the context of a defective...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

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

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

Property Subrogation Alert: Potential Property Subrogation Opportunities in South Carolina Related to the Recent Historic Rainfall...

In light of the recent historic rainfall and flooding in South Carolina, Nexsen Pruet’s property subrogation and recovery team would like to advise you of potential subrogation opportunities that may otherwise go overlooked....more

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

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