This is No “Accident”: Ohio Court Rules CGL Policy Doesn’t Cover Shoddy Subcontractor Work

One of the ongoing battles in construction defect coverage law around the country is whether a general contractor’s commercial general liability (“CGL”) policy obligates the insurer to defend and indemnify the general contractor in a lawsuit based on faulty work performed—not by the general contractor—but on its behalf by a subcontractor. Yesterday, Ohio joined a small minority of states when its high court ruled that damage from a subcontractor’s faulty work is not an accident triggering an insurer’s defense obligation.
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New York Court Finds Insured Failed to Establish its Broad Discovery Demands Might Lead to Evidence Relevant to the Application of an Exclusionary Provision in Commercial General Liability Policy

In Northfield Insurance Company v. Golob, an insurer issued a commercial general liability policy to owners of a residential construction project. The policy contained an exclusion titled “Contracted Persons” exclusion, which barred coverage for bodily injury sustained by any person “employed by . . . any organization that . . . [c]ontracted with [the named insured] or with any insured for services” where the injuries “[arose] out of and in the course of employment by that organization.” As a part
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Do Insurers Have an Interest in Interest?

“In some states, interest can be a significant portion of a judgement,” Goldberg Segalla partners Jonathan Schapp and Michael T. Glascott explain. “Although it is not generally expected that interest on a judgment falls within the coverage provided under a commercial general liability policy, many policies contain a Supplementary Payment provision which could give rise to an obligation to reimburse such interest.” In a new article for Claims Journal, Jon and Mike take an in-depth look at how interest accrues, prejudgment and post-judgment interest,
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Do Not Pass Go, Do Not Collect Hundreds of Thousands of Dollars: Seventh Circuit Parses Through Insured’s Gamesmanship to Find No CGL Coverage for Settlement of Faulty Workmanship Claim

In Allied Property & Casualty Insurance Co. v. Metro North Condominium Ass’n, No. 16-1868, 2017 U.S. App. LEXIS 4107 (March 8, 2017), the Seventh Circuit found coverage unavailable for a settlement of a lawsuit against a subcontractor alleged to have improperly installed windows at a condominium building. The court’s holding, in essence, was that the bases for the settlement were inconsistent with the claims against the subcontractor, and the only such viable claims could not possibly have been covered under
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