The underlying plaintiff's allegations contended the contractor was in breach of contract for construction defects caused in building her home. Accordingly, the court found no coverage. See Nat'l Builders and Contractors Ins. Co. v. Slocum, 2011 U.S. Dist. LEXIS 81694 (S.D. Miss. July 26, 2011).
Slocum Construction LLC sold a home it built to Laura Peterson. Subsequently, Peterson filed suit, alleging a breach of the contract and seeking rescission and cancellation of the contract. Peterson further alleged at least thirty-three specific defects in the construction of the house.
Slocum tendered to its insurer, National Builders and Contractors Insurance Company (NBCI). NBCI filed suit for a declaratory judgment. In its unopposed motion for summary judgment, NBCI argued none of the alleged "property damage" stated in the underlying complaint was caused by an "occurrence." Under Mississippi law, only when property damage was proximately caused by an accident did an "occurrence" trigger coverage. See Architex Assoc., Inc. v. Scottsdale Ins. Co., 27 So.3d 1148 (Miss. 2010).
Peterson's complaint alleged Slocum failed to carry out its duties pursuant to the contract and in a workman like manner in constructing the home, resulting in faulty construction. Further, the complaint alleged that the failure of Slocum to build the house in accordance with the contract and its warranty obligations was conscious and deliberate - not inadvertent or by mistake. Therefore, the breach of contract and warranty claims did not allege an "occurrence" under the policy.
Consequently, NBCI's motion for summary judgment was granted.