News & Analysis as of

Property Damage Policy Exclusions Construction Industry

Cozen O'Connor

Court Differentiates Faulty and Defective Workmanship from Vandalism or Malicious Mischief

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In Carr v. Spinnaker Insurance Company, the United States Court of Appeals for the Ninth Circuit upheld the district court’s finding that property damage resulting from objectionable and imperfect work performed by an...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

Payne & Fears

Texas Federal Court Delivers Another Big Win for Policyholders on CGL Coverage for Construction-Defect Claims and “Rip-and-Tear”...

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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

Payne & Fears

Pennsylvania Federal Court Confirms: Construction Defect Claims Not Covered by CGL Policies

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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

Payne & Fears

Nevada Insureds Can Rely on Extrinsic Facts to Show that An Insurer Owes a Duty to Defend

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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

Carlton Fields

South Carolina Federal Court Finds No Coverage for Faulty Workmanship Damages Discovered Years After Occurrence-Based Policy...

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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

Bradley Arant Boult Cummings LLP

An Insurer’s Duty to Defend does not Extend to a Construction Claim that Falls Clearly Within a Policy Exclusion

Like most states, Florida follows the rule that an insurer’s duty to defend is separate from and broader than its duty to indemnify for a potentially covered occurrence. Last week, in South Winds Construction Corp. v....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

White and Williams LLP

New Jersey Federal Court Examines And Applies The “j.(5)” Ongoing Operations Exclusion

In PJR Construction of N.J. v. Valley Forge Insurance Company, 2019 U.S. Dist. LEXIS 127973 (D.N.J. July 31, 2019) (PJR Construction), a New Jersey federal court held that the “j.(5)” “Ongoing Operations Exclusion” applied to...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

Farella Braun + Martel LLP

The 10th Circuit Correctly Construes “That Particular Part” Narrowly

We do not often write about coverage opinions from jurisdictions as far away as Oklahoma; however, a recent case from the Federal Tenth Circuit looked at one of our favorite topics and came out with a much better reasoned...more

White and Williams LLP

Third Circuit Court of Appeals Concludes “Soup to Nuts” Policy Does Not Include Faulty Workmanship Coverage

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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

Pillsbury - Policyholder Pulse blog

Ohio Supreme Court Finds Subcontractor’s Faulty Workmanship Causing Damage to the Work Itself Not Covered under CGL Policy

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

Pillsbury - Policyholder Pulse blog

The Devil in the Details: When Settlements with Co-Defendants Become “Other Insurance”

As the old adage goes, “the devil is in the details.” Insurance policy terms do not always apply in ways that policyholders expect. For this reason, it is imperative to understand how coverages, definitions and exclusions...more

Proskauer Rose LLP

New York Insurance Law: Under Construction

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Imagine you hired a general contractor to renovate the master bathroom of your home. The general contractor hired a subcontractor to do the plumbing work, but the subcontractor botched the job, resulting in a massive leak...more

Dorsey & Whitney LLP

Will New York Law Go the Way of Weedo: Tenth Circuit Predicts New York Court of Appeals Will Hold that Property Damage Caused by a...

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On February 13, 2018, the Tenth Circuit Court of Appeals reversed a lower court decision, which concluded that, under New York law, the property damage caused by a subcontractor’s faulty workmanship did not qualify as a...more

Farella Braun + Martel LLP

Courts Misunderstand the Meaning of “That Particular Part”

This is part one of a two-part series looking at how court decisions in recent years have thwarted general contractors’ reasonable expectation of coverage under their general liability policies....more

Carlton Fields

Subcontractor Exception Torpedoes Insurers’ Defense To Faulty Workmanship Claim

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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

Carlton Fields

Construction Case Law Update - April 2015 #2

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Commercial General Liability Policies; “Injury-in-fact” vs. “Manifestation” as Trigger for Coverage; “Your Work” Exception – A CGL policy’s “Your Work” exclusion precludes coverage for defective installation when no damage...more

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