Distinguishing its seminal case on coverage for construction defects, Weedo v. Stone-E-Brick, Inc., 81 N.J. 233 (1979), the New Jersey Supreme Court determined that rain damage to the building caused by a subcontractor's faulty workmanship constituted "property damage" and an "occurrence" under the property developer's CGL policy. Cypress Point Condo. Ass'n v.Towers
When Does Duty to Defend End
My colleagues Rina Carmel, Karin Aldama and I authored an article entitled, "Determining Whether and When the Duty to Defend Ends." The article appears in the current edition of Coverage, published by the Insurance Coverage Litigation Committee of the ABA. The article is here.
The article discusses common issues that arise in determining
Insured Need Not Own Property When Property Damage Occurs
The federal magistrate predicted that the Oregon appellate courts would not adopt the owner-claimant rule, restricting recovery under the policy to the time period during which the insured owned the property. Am. States Ins. Co. v. PIH Beaverton LLC, 2016 U.S. Dist. LEXIS 83188 (D. Or. May 3, 2016).
PIH purchased a hotel in
No Defense Owed for Suit Alleging Bodily Injury Outside Policy Period
The Court granted the insurer's motion to dismiss because the injury occurred after the policy period had expired. Goins v. C&S Global Imports, Inc., 2016 U.S. Dist. LEXIS 79160 (W.D. Ky. June 17, 2016).
Plaintiff James Goin visited the site of a deer hunt on property owned by Kevin Turn
Lessor Not Covered by Lessee’s Policy
The court granted the insurer's motion to dismiss a lessor's complaint seeking coverage because the lessor was not insured under the lessee's policy. Dynasty Int'l LLC v. Lexington Ins. Co., 2016 U.S. Dist. LEXIS 78443 (N.D. Ind. June 16, 2016).
Plaintiffs leased property to Chrysler Realty Company LLC (CRC). The lease required CRC to
Whether Duty to Defend Extends to Counterclaim Certified to State Court
The First Circuit Court of Appeals certified questions to the Massachusetts Supreme Judicial Court (SJC) on whether the insurer's duty to defend required paying for the insured's pursuit of counterclaims. Mount Vernon Fire Ins. Co. v. VisionAid, Inc., 2016 U.S. App. LEXIS 10464 (1st Cir. June 9, 2016).
VisionAid
Federal Court Again Confirms No Coverage For Construction Defects in Hawaii
The Hawaii federal district court confirmed its prior holdings that there is no duty to defend or indemnify for property damage caused by faulty workmanship. State Farm Fire & Cas Co. v. GP West, Inc., 2016 U.S. Dist. LEXIS 74240 (D. Haw. Jun 7, 2016). (Full disclosure – our office represents GP West in
Bad Faith Attorneys’ Fees Decided After Verdict May Be Included in Punitive Damage Calculation
The California Supreme Court considered whether the calculation for punitive damages may include attorneys' fees expended to obtain benefits determined after the jury has rendered its punitive damages verdict. Nickerson v. Stonebridge Life Ins. Co., 2016 Cal. LEXIS 3757 (Cal. June 9, 2016).
The insured broke his leg on February 11, 2008, when he
Iowa Court Holds Defective Work Performed by Insured’s Subcontractor Constitutes an “Occurrence”
The Iowa Supreme Court held that property damage caused by a subcontractor's defective work was an "occurrence." Nat'l Sur. Corp. v. Westlake Invs., LLC, 880 N.W. 2d 724 (Iowa 2016).
In 2002, the insureds, the developers and general contractor, began construction on an apartment complex. While the complex was still
Policy Does Not Commit Insurer to Provide Supersedeas Bond
The insured's claim that the insurer improperly refused to provide a supersedeas bond was rejected by the federal district court. James River Ins. Co. v. Interlachen Property Owners Ass'n v. Kuepers Constr., 2016 U.S. Dist. LEXIS 71825 (D. Minn. June 1, 2016).
Kuepers Construction, Inc. constructed a townhome project on property owned by the Association.