The insurer successfully established on summary judgment that the insureds' alleged misrepresentation in the sale of a condominium was not an occurrence. Novak v. St. Maxent-Wimberly House Condo., 2020 U.S. Dist. LEXIS 167397 (E.D. La. Sept. 14, 2020).
State Farm issued the sellers a condominium unit owner's policy. The buyers sued the sellers, contending the sellers had made misrepresentations in the sale process. The sellers allegedly failed to disclose defects in the condominium before and at the time of the sale. State Farm intervened, seeking a declaration that it was not required to defend or indemnify the sellers because there was no occurrence.
The sellers asserted that the buyers could be seeking damages for physical damage to and loss of use of the condominium. While this could constitute "property damage" under the policy, the sellers failed to explain how the damage could be considered to be caused by an occurrence. Therefore, State Farm's motion for summary judgment was granted.
