News & Analysis as of

Denial of Insurance Coverage Construction Industry Property Damage

Conn Kavanaugh

First Circuit Rules on Important Coverage Issue for Contractors.

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First Circuit Court of Appeals Rules That Standard Commercial General Liability Policy Excludes Coverage for Downstream Property Damage When General Contractor’s Scope of Work Covers Entire Building - It is well-accepted...more

Robinson+Cole Construction Law Zone

Suit Limitation Provisions in New York

New York law generally enforces a contractual suit limitation that specifies a “reasonable” period of time (usually shorter than the applicable statute of limitations) within which an action must be commenced. The contractual...more

MG+M The Law Firm

US Appeals Court Upholds No CGL Coverage for General Contractor for Subcontractor's Defective Work

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On November 8, 2024, the US Court of Appeals for the First Circuit (the Court) issued a decision in the matter of Admiral Insurance Company, et al. v. Tocci Building Corporation, et al., No. 22-1462 (1st Cir. 2024). The...more

Carlton Fields

Alabama Federal Court Finds No Duty to Defend Lawsuit Alleging Concealment of Defects in Sale of Home

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In Nationwide Mutual Fire Insurance Co. v. Carmichael, the U.S. District Court for the Northern District of Alabama, applying Alabama law, entered summary judgment ruling that Nationwide Fire Insurance Co. had no duty to...more

Sheppard Mullin Richter & Hampton LLP

Court Finds That “Care, Custody Or Control” Exclusion Did Not Negate Coverage For General Contractor Who Shared Jobsite...

McMillin Homes Constr., Inc. v. National Fire & Marine Ins. Co., 35 Cal.App.5th 1042 (2019); Fourth Appellate District Court of Appeal, Division One, Case No. D074219 (June 5, 2019). McMillin Homes Construction, Inc....more

Spilman Thomas & Battle, PLLC

A Case to Watch: Brayman v. Westfield Insurance

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

Farella Braun + Martel LLP

“That Particular Part” – Yet More

Massachusetts Appeals Court Gets It Right – Mostly - Hot on the heels of the Federal Tenth Circuit Court of Appeals’ decision in MTI, Inc. v. Employers Insurance Company of Wausau, __ F.3d __, 2019 WL 321423 (10th Cir....more

Bricker Graydon LLP

Got coverage? What to consider in the wake of the Ohio Supreme Court’s ruling on Ohio Northern University v. Charles Construction...

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On October 9, 2018, in Ohio N. University v. Charles Constr. Servs., Inc., Slip Opinion 2018-Ohio-4057, the Ohio Supreme Court ruled that property damage caused by a subcontractor’s allegedly defective work was not covered...more

Faegre Drinker Biddle & Reath LLP

Illinois Appellate Court Rejects Federal Insurance Coverage Analysis, Finds Duty to Defend Against Construction Defect Allegations

On March 29, 2019, the Illinois Appellate Court issued an opinion clarifying when a duty to defend against construction defect allegations exists under a subcontractor’s commercial general liability (CGL) policy. The decision...more

Troutman Pepper Locke

Applying Florida’s “Eight Corners Rule,” Eleventh Circuit Finds that Insurer Has a Duty to Defend Claim That Insured’s Faulty...

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Addison Ins. Co. v. 4000 Island Blvd. Condo. Ass’n, 2017 U.S. App. LEXIS 26870 (11th Cir. Dec. 28, 2017) - The owner of a high-rise condominium building in Florida hired a contractor to replace the building’s concrete...more

Cozen O'Connor

Coverage to Rebuild a Foundation to Comply with Changed Building Codes Following a Fire are Subject to Code-Upgrade Endorsement’s...

Cozen O'Connor on

Does the efficient proximate cause rule serve to afford coverage for the additional costs to rebuild the foundation of a home in compliance with changed building code requirements beyond the sublimit of liability of an...more

Snell & Wilmer

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

Snell & Wilmer on

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

Cozen O'Connor

Workmanship and Earth Movement Exclusions Preclude Coverage for Collapse As a Matter of Law

Cozen O'Connor on

A U.S. federal district court recently granted Peerless Insurance’s summary judgment motion, concluding that, as a matter of law, under Virginia law, a property policy insuring a building under renovation would not provide...more

Troutman Pepper Locke

Federal Court in Maryland Denies Summary Judgment, Holding That Subcontract Provision Placing Responsibility for Property Damage...

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Turner Constr. Co. v. BFPE Int’l, Inc., No. JKB-15-368, 2016 U.S. Dist. LEXIS 39161 (D. Md. Mar. 25, 2016) - The University of Maryland Medical Center (“UMMC”) entered into a contract (the “Prime Contract”) with Turner...more

Carlton Fields

The Importance Of 'The' In Crafting Insurance Exclusions

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A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage...more

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