LexisNexis® Legal Newsroom
Sweet Carolina For Insurers: Good Times Will Never Seem So Good For Construction Defect Claims

By Randy Maniloff, Partner, White and Williams LLP South Carolina Supreme Court Significantly Limits The Scope Of CD Coverage I’ve always wanted to visit South Carolina. Right now South Carolinians are probably nodding their heads as they imagine the state’s many world class attractions...

Sweet Carolina For Policyholders: Good Times Will Never Seem So Good For Construction Defect Claims

South Carolina Supreme Court Withdraws Crossmann Communities and Allows Coverage for Consequential Damages of Construction Defects - Court Adopts Time on the Risk Allocation Randy J. Maniloff, White and Williams, LLP The Supreme Court of South Carolina has issued its opinion in the very closely...

Sweet Defective-Home Alabama: Supreme Court Addresses The “Occurrence” Issue

"Sub-Contractor" Exception Applies - But Not To A Sub-Contractor's Own Work Randy J. Maniloff, White and Williams, LLP Last month I was in Las Vegas where I had the privilege of speaking at the CPCU Society's Annual Meeting (and paying $9 for a Diet Coke at a restaurant - Really...

Arizona Appeals Court Takes Different Tack In Addressing Independent Counsel Fees

Will The Decision Now Go From Phoenix, Arizona All The Way To Tacoma, Philadelphia, Atlanta, L.A.? "I say put money in thy purse." Othello Act 1, scene 3 Randy J. Maniloff, White and Williams, LLP Don't be fooled by the Shakespeare quote. I'm not that smart. I wouldn't...

Construction Defects as an ‘Occurrence’: State Legislatures Weigh In

By Edwin L. Doernberger and Theresa A. Guertin, Attorneys, Saxe Doernberger & Vita, P.C. In their article appearing in the November/December 2011 issue of Coverage, "Construction Defects as an 'Occurrence': State Legislatures Weigh In" by Edwin L. Doernberger and Theresa A....

Faulty Workmanship is Not an “Occurrence” But the Damage it Does Is an Occurrence

By Barry Zalma, Attorney and Consultant The Wisconsin Court of Appeal was called upon to resolve a dispute that arose out of damages suffered by VPP Group, LLC the grew from construction work being performed by contractors on a building owned by VPP. VPP was insured by Acuity. Acuity paid the damage...

McCarter & English LLP on New Jersey Appellate Division Opens Door to Coverage for Subcontractors' Defective Work

By Craig W. Davis and Nicholas M. Insua, Attorneys, McCarter & English, LLP A recent decision by New Jersey's Appellate Division questions the continued viability of prior New Jersey decisional law regarding whether property damage caused by faulty construction constitutes an "occurrence"...

McKenna Long & Aldridge LLP On A Roadmap For Determining Coverage For Construction Defect Claims In New York

By Richard B. Friedman, J. Stephen Berry, and P. Michael Freed, Attorneys, McKenna Long & Aldridge LLP In their commentary, McKenna Long & Aldridge LLP on a Roadmap for Determining Coverage for Construction Defect Claims in New York , by Richard B. Friedman, J. Stephen Berry and P. Michael...

Jing on Insurance Coverage for Construction Defects: Developments in Federal & State Law

Jing on Insurance Coverage for Construction Defects: Recent Developments in Federal and State Law by Audrey J. Jing of Kelley, Drye & Warren LLP examines the current split among jurisdictions as to whether a claim for defective workmanship falls within the scope of the standard form insuring agreement...

SNR Denton LLP on Lennar Corp. v. Transamerica Insurance Co.: Whither Bad Faith in Arizona?

By William T. Barker & Ronald D. Kent, Partners, SNR Denton This commentary examines a potentially pivotal court decision in the law of bad faith and its implications. The Arizona Court of Appeals in Lennar Corp. v. Transamerica Insurance Co. held that a later-reversed trial court summary judgment...

Supreme Court of South Carolina Bars Insurance Coverage in Defective Construction Case with a Twist

By Scott C. Turner, Attorney, Anderson Kill SUMMARY: Wednesday, the Supreme Court of South Carolina issued its decision in Bennett & Bennett Const., Inc. v. Auto Owners Ins. Co. , 2013 S.C. LEXIS 170 (S.C. 2013), holding that Commercial General Liability (CGL) policy’s coverage for defective...

Connecticut Supreme Court, in a Case of First Impression, Holds Negligent Construction Insured Under General Liability Policy

In Capstone Building Corp. v. American Motorists Insurance Co. , 67 A.3d 961 (Conn. 2013) [ enhanced version available to lexis.com subscribers ], a case of first impression, the Supreme Court of Connecticut considered whether allegations that a subcontractor’s unintended defective construction...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Almost Heaven For Policyholders: West Virginia High Court Overrules Four Prior Decisions And Holds That Faulty Workmanship Is An “Occurrence” [And Two Others Do The Same]

Ordinarily I would not include in the annual insurance hit-parade a case addressing the beat-to-death issue whether faulty workmanship qualifies as an “occurrence” under a commercial general liability policy. There are simply too many cases addressing the issue so any single new one, even...

Ten Most Significant Insurance Coverage Decisions Of 2013 – Texas Supreme Court: Insured’s Settlement Without Insurer’s Consent Covered Insured’s Texas 1-Step: Settle And Skip Insurer’s Consent

As a general rule, when an insured is tardy in providing notice of claim to an occurrence-based liability insurer, the insurer is not relieved of coverage, on such ground, unless it can demonstrate that it was prejudiced by such late notice. This is often-times a high hurdle for the insurer to meet....

Leading Coverage Lawyers: The Most Significant Insurance Coverage Decisions Of 2013

For the past 13 years, at around this time, I have sat down and inked a list of the ten insurance coverage decisions of the year just-completed that I believed were the most significant. There was nothing complex or scientific about the process nor authoritative about the results. Neither was the process...

Insured May Settle Claim Before Suit if Insurer Wrongfully Denies Coverage

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP In Selective Ins. Co. v. Cherrytree Cos. , 2013 IL App (3) 120959 [ enhanced version available to lexis.com subscribers ], the Illinois Appellate Court for the Third District drove the final nail in the insurer’s “if there...

Pennsylvania Superior Court Opens Door to Coverage of Faulty Workmanship Claims

By Darin J. McMullen Pennsylvania policyholders can more confidently challenge insurance companies' denials of faulty workmanship claims following the Pennsylvania Superior Court's recent opinion in Indalex Inc. v. National Union Fire Ins. Co. of Pittsburgh, PA, 2013 Pa. Super 311 (Dec...

A Faulty Workmanship—“Occurrence” Case Worth Reading

The title of this article tells you how I feel about the continuous barrage of decisions addressing coverage for construction defects – in particular whether faulty workmanship constitutes an “occurrence” under a commercial general liability policy. I’m not saying that these cases...

Construction Defects and the Space Between: Gap and Overlap In the Combined Coverage of Performance Bonds and CGL Policies for Construction Defects

By Thomas Rush and David A. Attisani Among other harbingers of a gradually convalescing economy, construction activity is on the rise, and is projected to remain on that trajectory throughout 2014. As a consequence of such growth, there will also be an increase in construction-related loss and...

Ewing’s Undoing’s Ungluing: Appeals Court Follows Ewing And Holds That Contractual Liability Exclusion Precludes Coverage For Construction Defect Claim

In January, the Supreme Court of Texas, in easily one of the most important coverage cases of 2014, held in Ewing Construction Co. v. Amerisure Insurance Co., [ enhanced version available to lexis.com subscribers ], that the “contractual liability” exclusion, contained in a CGL policy, did...

MUST READ Reservation Of Rights Case (A Top 10 Case Of 2014)

I’m capable of writing a hyperbolic headline in Coverage Opinions now and then. Really, I am. But this isn’t one of them. If you read only one article in this issue of CO , make it this one. In Builders & Exteriors, Inc. v. Mid-Continent Casualty Co., No. WD 76880 (Mo. Ct. App. Sept...

CGL Policy Did Not Afford Coverage for an Underlying Construction Defect Action because the Alleged Property Damage Was Discovered after the Policy Period and the Total Residential Construction Exclusion Was Implicated

In Atain Speciality , [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the Northern District of California entered a default judgment in favor of the insurer because the damages alleged in an underlying construction defect action were not discovered until after...

Montrose Endorsement Did Not Exclude Coverage

In general, insurers have had mixed results when it comes to enforcing the Montrose (known loss) endorsement in construction defect coverage cases. Some courts have interpreted them narrowly and applied a strict “sameness” (my term) test between the “property damage” that existed...

Very Significant Duty To Defend Case: If You Read Only One Article In This Issue Of Coverage Opinions….

If you read only one article in this issue of Coverage Opinions, make it the one about my webinar – “The Definitive Reservation of Rights Checklist: 50 Things That Every ROR Needs.” If you read two, make this one the other. There have been a lot of cases over the past few years,...

Unique Look at One of the Newest Aspects of Construction Defect Coverage (And a Broker Warning)

If you do construction defect coverage work, then you’ve definitely seen an endorsement, on a general liability policy, that is along the lines of this (but with more detail): If liability arises out of the insured’s use of a sub-contractor, no coverage is owed to the insured if the sub-contractor...