After almost two years' deliberation, the First Circuit last week issued its long-awaited decision in Admiral Ins. Co. v. Tocci Bldg. Corp.: affirming on other grounds, and leaving in place a district court decision that...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
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
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
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
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
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
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
Potential Six-Year Delay in Notice of Flood and Mold Damage “Substantially Prejudiced” Insurer - In Atain Specialty Insurance Company v. Carolina Professional Builders, LLC et al., 2:18-cv-2352-BHH (D.S.C. Oct. 2, 2020),...more
In William Lansing v. Doe, 2019 Ore. App. LEXIS 1564, the Court of Appeals of Oregon considered whether the Economic Loss Doctrine (ELD) applied to the plaintiff’s claims based on purportedly faulty construction work in a...more
The standard for an “occurrence” under a commercial general liability (CGL) insurance policy has been addressed on several occasions by Pennsylvania courts when an insured has allegedly performed faulty workmanship on a...more
Earlier this month, in Frederick Mutual Insurance Company v. Hall, the U.S. Court of Appeals for the Third Circuit concluded that coverage for faulty workmanship claims is “simply not the kind of coverage insurance agents and...more
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
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
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
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
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
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
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
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