Is faulty workmanship an occurrence under a CGL policy? West Virginia now says yes
By Laura R Thomson
After more than a decade in the ‘no’ column, West Virginia can now be counted among — as its highest court reports — the majority of states that recognise that defective construction causing bodily injury or property damage is an ‘occurrence’ under standard CGL policies.
In this June 2013 decision, the court expressly overruled its prior pronouncements on this issue in Erie Ins. Property & Cas. Co v Pioneer Home Improvement, Inc [206 W.Va 506 (1999)]; Corder v William W. Smith Excavating Co [210 W. Va. 110 (2001)]; Webster County Solid Waste Auth’y v Brackenrich & Assoc’s, Inc [217 W. Va. 304 (2005)]; as well as McGann v Hobbs Lumber Co [150 W. Va. 364 (1965)] and their progeny.
Cherrington is a case involving coverage for defective construction of a home under the general contractor’s CGL policy and under its principal’s homeowner’s and umbrella policies, all issued by Erie Insurance Property & Cas. Company. In the underlying complaint against Pinnacle Group (the general contractor), Cherrington (the homeowner), sued for negligent construction and breach of fiduciary duty and sought to recover for emotional distress as well as for damages resulting from defects in her home discovered after completion — defects resulting from the work of Pinnacle’s subcontractors…
If you are registered and logged in to the site, click on the link below to read the rest of the Pillsbury briefing. If not, please register or sign in with your details below.
News from Pillsbury Winthrop Shaw Pittman
News from The Lawyer
Briefings from Pillsbury Winthrop Shaw Pittman
The Occupational Safety and Health Administration of the US Department of Labor proposed a new rule which will require employers to electronically report injury and illness data on a quarterly basis.
The authors analyse two decisions by the US Supreme Court that narrow the circumstances under which employers can be held liable for retaliation or harassment claims under Title VII of the Civil Rights Act of 1964.