When property damage manifests before the policy period, but continues over time and overlaps the CGL's policy period, does the policy provide coverage? Applying Florida law, the U.S. District Court determined that under the manifestation trigger, there was no coverage. See Amerisure Ins. Co. v. Albanese Popkin The Oaks Development Group, L.P., 2010 U.S. Dist.
Comprehensive General Liability
Policy Language Restricts Ongoing Damage to One Occurrence
By Tred R. Eyerly on
Are construction defects that allegedly result in water intrusion and property damage over several policy periods the result of one occurrence or multiple occurrences? This was the issue under consideration in Bayley Constr. v. Am Guar. and Liab. Ins. Co., 2010 U.S. Dist. LEXIS 110767 (W.D. Wash. Oct. 15, 2010).
Bayley Construction…
Insurer’s Motion to Deny Coverage to Additional Insured Fails
By Tred R. Eyerly on
The insurer's motion for summary judgment, seeking to deny coverage for an additional insured, was rejected in York Hunter Constr. Serv., Inc. v. Great Am. Custom Ins. Serv., Inc., 2010 N.Y. Misc. LEXIS 4513 (N.Y. Sup. Ct. Sept. 17, 2010).
A plumber was injured on the job site when his foot got…
CGL Exclusion for Auto Accidents Bars Coverage
By Tred R. Eyerly on
An exclusion under a CGL policy for bodily injury arising out of automobile accidents prevented coverage when an employee was at fault. See Sprinkles v. Assoc. Indemn. Corp., 2010 Cal. App. LEXIS 1532 (Cal. Ct. App. Sept. 1, 2010).
Bibinz, an employee of Sinco, caused the accident, killing the deceased. The deceased's family…
Exclusion for Roofing Excludes Liability for Claim Arising out of Re-Roofing
By Tred R. Eyerly on
An exclusion for claims arising from roofing barred coverage when the underlying plaintiff was injured after falling from a scaffold. See Penn-America Ins. Co. v. Lavigne, 2010 U.S. App. LEXIS 17675 (1st Cir. Aug. 24, 2010).
Michael Daigle was hired to put a new roof on an apartment building and to seal some…
Documented Prior Knowledge of Defect Eliminates Coverage
By Tred R. Eyerly on
Sorting out whether the contractor had coverage for alleged construction defects under the subcontractor's policies was the issue in Travelers Cas. and Sur. Co. v. Dormitory Auth., State of New York, 2010 U.S. Dist. LEXIS 79024 (S.D. N.Y. July 30, 2010).
Trataros Construction, Inc. was the general contractor on the project. Trataros contracted…
Oral Agreement to Add Named Insured Insufficient to Impose Coverage
By Tred R. Eyerly on
Whether an oral agreement to name a subcontractor as an additional insured under the policy provided coverage to the subcontractor was the issue in Palmer v. Martinez, 2010 La. App. LEXIS 1049 (La. Ct. App. July 21, 2010).
The plaintiff was employed by A.T. Martinez ("ATM") as a logging truck driver. ATM…
Insurer Must Indemnify When Water Damage Manifests During Policy Period
By Tred R. Eyerly on
The insurer defended the underlying construction defect case under a reservation of rights, but moved for summary judgment in the coverage action on its duty to indemnify. Mid-Continent Caus. Co. v. Frank Casserino Constr., Inc., 2010 U.S. Dist. LEXIS 59363 (M.D. Fla. June 16, 2010).
The general contractor subcontracted with the insured to perform building…
Pre-Existing Damage Exclusion Does Not Excuse Duty to Defend
By Tred R. Eyerly on
In a coverage dispute between two insurers, the court considered the impact of an endorsement excluding coverage for any loss that first manifested before the term of the policy. See Pa. Gen. Ins. Co. v. Am. Safety Indemn. Co., 2010 Cal. App. LEXIS 981 (Cal. Ct. App. June 28, 2010).
Whitacre Construction, a…
Colorado Court Asked Whether Construction Defect is an Occurrence?
By Tred R. Eyerly on
As we noted in a prior post, the Hawaii Intermediate Court of Appeals recently decided that construction defects do not constitute an occurrence under a CGL policy. Citing the same Colorado Court of Appeals case that the Hawaii ICA found persuasive, the 10th Circuit certified a similar issue to the Colorado Supreme Court in Greystone …