insurance coverage: Washington’s Supreme Court Holds That Tear-Out Damage Is Property Damage Under Contractors’ and Developers’ CGL Policies
- 10/23/08 09:47 AM
For many years, Washington attorneys on all sides of the insurance debate have disagreed over the extent to which CGL policies covering “property damage” provide coverage to non-damaged work requiring tear-out and replacement as a result of underlying damaged work. Today, in its decision in Mutual of Enumclaw v. T&G Construction Co., Inc., ___ Wn.2d ___ (2008), the state’s Supreme Court held that tear-out is covered property damage under a CGL policy. The case arose when the Villas at Harbour Pointe Owners Association sued the project’s developer for construction defects, including water intrusion and resulting damage, at the Villas at Harbour … (0 comments)
insurance coverage: Ninth Circuit Holds That Substandard Construction Absent Intentional Breach Constitutes An “Occurrence” Under Washington Law
- 07/16/08 04:16 AM
In October 2006, the trial court issued its order in Mid-Continent Casualty Co. v. Williamsburg Condominium Association (unpublished opinion), holding that defective construction is not an “occurrence” triggering coverage under a CGL policy. Recently, the Ninth Circuit Court of Appeals overturned this decision to hold that it is. Williamsburg arose when the Williamsburg Condominium Association (the “HOA”) sued the developer of the project for defective construction, breach of Washington’s Condominium Act, and other claims. In turn, the developer sued the general contractor, Titan, and Titan tendered defense and indemnity to its insurance company, Mid-Continent Casualty Company. The matter settled, and Mid-Continent … (0 comments)
insurance coverage: Liability for Breach of Contract for Failure to Procure Insurance
- 01/30/07 06:02 AM
A Division 1 Court of Appeals opinion released last week has determined that a county that promises to procure insurance for its contractor may be liable to the contractor for breach of contract if the county fails to procure that insurance. However, the contractor must demonstrate that the insurance procured would have covered the damage claimed. The issue in Frank Coluccio Construction Company, Inc. v. King County, 2007 WL 137633 (Wn. App. 2007) arose when King County hired Frank Coluccio Construction Company (Coluccio) as a general contractor for a public works project involving construction of a small utility tunnel under the … (0 comments)
insurance coverage: Property Insurance After Storms and Other Disasters
- 12/18/06 11:02 AM
On Thursday night and early into Friday morning, Western Washington was hit with one of the worst wind storms in the region’s history. Puget Sound Energy reported almost one million customers without power, and despite round-the-clock repairs by approximately 350 crews from nine different states and Canada, power has been restored to less than half of their customers. The damage, however, goes beyond power outages. Many homes and businesses have sustained varying degrees of damage from fallen and uprooted trees. Thus, property insurance will play a major role in repairing and rebuilding after the storm. Like any other agreement, property insurance … (0 comments)
For many years, Washington attorneys on all sides of the insurance debate have disagreed over the extent to which CGL policies covering “property damage” provide coverage to non-damaged work requiring tear-out and replacement as a result of underlying damaged work. Today, in its decision in Mutual of Enumclaw v. T&G Construction Co., Inc., ___ Wn.2d ___ (2008), the state’s Supreme Court held that tear-out is covered property damage under a CGL policy.;)
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