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Tag: defective construction


Florida’s Supreme Court Resolves Conflicting Appellate Court Decisions on Concurrent CausationDec 12, 2016

What happens when a policyholder suffers a loss caused by multiple perils, but not all perils are covered? On one hand, Florida’s Second District Court of Appeals has ruled that there should be no coverage under the efficient proximate cause doctrine. On the other hand, Florida’s Third District Court of Appeals has held that pursuant to the concurrent clause doctrine, there should be coverage. So which is the right theory…

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Fla. Policyholders Gain Slight Edge In Property Damage CasesDec 02, 2016

In breaking news yesterday, LAW360.com posted “the Florida Supreme Court ruled that policyholders may obtain coverage for an entire property insurance claim where there are multiple concurrent causes of loss and at least one is covered under a policy, agreeing with a decades-old precedential appellate decision.” Today, LAW360 gave a detailed analysis of the decision, and asked Gregory Podolak for his input… Greg Podolak, managing partner of Saxe Doernberger &…

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Faulty Workmanship an Occurrence in Iowa – as Long as Other Property Damage is InvolvedNov 23, 2016

The Eighth Circuit recently weighed in on one of the more contentious issues in insurance coverage litigation: is faulty workmanship an occurrence? In Decker Plastics Inc. v. West Bend Mut. Ins. Co., the Eighth Circuit ruled that, under Iowa law, faulty workmanship is an occurrence – as long as it leads to other property damage. Decker Plastics sold plastic bags to Al’s Inc., which used the bags to package landscaping…

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New Case Alert: Oregon Supreme Court Prohibits Insurer’s Attempt to Relitigate Insured’s LiabilityNov 15, 2016

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…

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Supreme Court of Canada Broadly Interprets Exception to Faulty Workmanship ExclusionNov 07, 2016

In a recent policyholder-friendly decision, the Supreme Court of Canada found coverage under an exception to the faulty workmanship exclusion in an all-risk policy. The decision provided the insureds with millions to cover the cost of replacing the faulty work. In Ledcor Construction v. Northbridge Indemnity Insurance Co., a subcontractor was hired to complete exterior cleaning of a high-rise building’s windows toward the end of construction. The subcontractor used improper…

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New Case Alert: Florida Supreme Court Denies Review of Appeals Court’s “Ensuing Loss” InterpretationOct 10, 2016

The Florida Supreme Court recently denied review of an appellate decision interpreting a policy’s “ensuing loss” exception to require a separate loss, entirely independent from the original excluded loss. This decision creates a challenge for Florida policyholders, particularly in the construction defect realm. Where an excluded loss is present, policyholders must carefully evaluate their coverage.  If the excluded loss cannot be separated from the subsequent, covered loss, the entire damage…

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Connecticut Additional Insured Privity Issue – UpdateAug 31, 2016

Following up last week’s blog post: on Monday, August 29th the United States Court of Appeals for the Second Circuit issued a summary order affirming the decision in First Mercury Ins. Co. v. Shawmut Woodworking & Supply, Inc., No. 3:12-cv-01096 (D. Conn. Sept. 23, 2014) The district court held First Mercury Insurance had to defend the construction manager from negligence actions against them relating to a deadly construction accident at…

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Goodbye Weedo, Hello CypressAug 11, 2016

As noted in our previous blog post, the NJ Supreme Court issued a pivotal ruling in the case of Cypress v. Adria. The court found that consequential damage at a construction project due to faulty workmanship is considered accidental and therefore an “occurrence” under a CGL policy. Click here to see our new Case Alert for further insight on this important decision.  

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NJ Justices Rescue Builders From Limbo In Faulty Work CaseAug 05, 2016

As we announced in our previous blog post, yesterday’s decision by the NJ Supreme Court was a significant win for policyholders. LAW360.com reported this morning on the case, and spoke to SDV partner Greg Podolak about the decision… Saxe Doernberger & Vita PC partner Greg Podolak, who represented Turner Construction Co. as an amicus in the case, pointed out that the New Jersey Supreme Court looked to the intent behind…

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Breaking News: NJ Supreme Court Rules that CGL Insurance Covers Property Damage Caused by Faulty WorkmanshipAug 04, 2016

Policyholder Victory! NJ Aligns with a Majority of the Country In a unanimous decision issued earlier this morning, the New Jersey Supreme Court held that consequential damages caused by a subcontractor’s faulty workmanship constitute “property damage” caused by an “occurrence” under the plain language of the CGL Policy. In making its decision in Cypress Point Condominium Association Inc. v. Adria Towers LLC, the court reviewed the history and development of…

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Texas Case Shows Why Contractors Should Require Insurance Coverage from their SuppliersAug 04, 2016

A recent Supreme Court of Texas case highlights the need for contractors to require contractual indemnity when engaging suppliers.  When faced with product liability stemming from defective products, contractors in Texas may have relied on the manufacturer’s indemnity mandated by the Texas Product Liability Act.  But according to this new decision, the statutory indemnity is not universally available to general contractors. The court determined that a general contractor cannot expect…

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Iowa Court Holds Defective Construction Is A Covered OccurrenceJun 28, 2016

A big decision in favor of policyholders came out in Iowa this month.  If you have a commercial general liability policy that is subject to Iowa law, damages resulting from defective construction are now covered as “occurrences” under your policy.  The Iowa Supreme Court’s decision, National Surety Corporation v. Westlake Investments, LLC, greatly improves the risk-management landscape for policyholders. For more details, please click to read our new Case Alert.  

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Insurance Cases to Watch in the Second Half of 2016Jun 24, 2016

Today’s edition of Insurance Law360.com discusses a number of the cases we have been covering in the SDV blog. Partner Gregory D. Podolak was quoted on the following cases: On Sebo v. American Home Assurance Co. Inc. – The case offers the Florida Supreme Court the chance to clearly articulate whether the concurrent cause or efficient proximate cause should govern first-party property insurance cases in the state, said Saxe Doernberger…

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Texas Rules Incorporation of Defective Products Is Not Physical Injury, But “Rip and Tear” Damages are CoveredJan 12, 2016

In a recent landmark decision, the Texas Supreme Court held that mere incorporation of defective products into a structure without additional property damage is not covered under a commercial general liability policy. However, “rip and tear” or “get to” damages are covered. In United States Metals, Inc. v. Liberty Mut. Group, Inc., the damages reported were not caused by the installation of a defective product, but by its removal and…

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New Jersey Supreme Court to Decide Whether Defective Construction Constitutes an “Occurrence”Nov 06, 2015

The New Jersey Supreme Court will enter the fray to decide whether consequential damages caused by the faulty work of a subcontractor constitute “property damage” and an “occurrence” under a general contractor’s CGL Policy. Should the Court affirm the Appellate Court’s decision, which held that consequential damages constitute “property damage” caused by an “occurrence,” it will be taking the first step in correcting a series of anti-policyholder decisions on the…

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