NGE OnDemand: The Importance of Timely Reporting Occurrences, Claims and Suits to Insurers with Paul Walker-Bright
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
An intentional act may not be an “occurrence” even when there is no intent to cause harm, according to a California appellate court’s recent ruling in Ghukasian v. Aegis Security Insurance Co.1 Ghukasian involved an insured...more
Construction defect cases often involve damage claims beyond simply the cost to repair the allegedly defective unit or component. These consequential damages may include damages for loss of use, expenses for mitigation and...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
On December 31, 2019, the First District Illinois Appellate Court issued its decision in Owners Insurance Company v. Precision Painting & Decorating Corporation, clarifying what does and does not constitute “property damage”...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
Pennsylvania law suggests construction defects generally are not considered an "occurrence" under most CGL insurance policies because defects are not true accidents, e.g., a fortuitous event. However, an exception generally...more
In this edition of The Site Report, our construction law e-newsletter, we cover a variety of issues affecting our clients and the industry right now. As with each issue, we encourage you to let us know if there are topics you...more
Although it may seem strange at first, the recent ruling by the California Fourth Appellate District Court in Thee Sombrero, Inc. v. Scottsdale Co., (2018 EL 5292072), holding that an insurer must pay for a claim where there...more
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
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
The Supreme Court of Alabama recently held in Owners Ins. Co. v. Jim Carr Homebuilder, LLC that a contractor’s commercial general liability (“CGL”) policy provided coverage for property damage caused by the defective work of...more
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
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
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
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
Getting Over the Bar: Second Circuit Requires Actual Payment of Underlying Limits In Order to Trigger Excess D&O Policies - In June, the Second Circuit held that two Federal Insurance Company ("FIC") excess D&O...more
The highest court in Georgia has recently added that jurisdiction to the growing list that considers defective construction, including defects in the work of a general contractor, to be an “occurrence” under the general...more
Homeowners sued their homebuilder alleging that the concrete foundations of their homes were improperly constructed. As a result, it was alleged that the foundations were failing, and the defects in the foundations had caused...more
Two federal courts in Denver recently addressed a fundamental question that exists in almost every construction defect case - when did the property damage that gives rise to liability, and the insurer's obligation, occur? ...more
Over the past few years, we have monitored the efforts of some in the insurance industry to deny coverage for construction defect claims brought by construction professionals. These insurers' assault on construction...more
On October 12, 2012, the Ohio Supreme resolved a longsimmering conflict among Ohio’s intermediate appellate courts by answering the following certified question: Are claims of defective construction/workmanship brought...more