In a big win for policyholders, the Oregon Supreme Court recently ruled that that insurance companies are not allowed to relitigate the nature of damages awarded against their insureds during an underlying trial.
In a coverage dispute stemming from a contractor’s faulty work on a condominium development, the insurer argued that at least a portion of the damages awarded represented the cost of repairing the contractor’s own work product. Coverage for such damages would be explicitly excluded by the policy. However, the Oregon Supreme Court found that the jury had been instructed that it could not award damages for the contractor’s own faulty workmanship. The court declined to give the insurer a chance to attempt to reclassify the nature of these damages.
Nov 15, 2016
Austin D. Moody