December 10, 2010 : Third Circuit Upholds Insurer's Denial of Coverage
In a significant win for liability insurers in New Jersey, a panel of the Third Circuit Court of Appeals has ruled that there is no coverage for faulty workmanship claims against a general contractor even when the work was performed by subcontractors. The December 10, 2010 decision in Pennsylvania National Insurance v. Parkshore Development affirmed a trial court ruling that there is no “occurrence” under a general liability policy where the only damage was to the construction project itself. With this opinion, the Third Circuit has aligned itself with other courts nationwide that have endorsed insurers’ rights to deny coverage for construction-defect claims so long as there is no third-party property damage.
Partner Michael S. Savett litigated the case on behalf the insurer at the trial and appellate levels.
A link to the opinion is below.
File Under: Results, Insurance, Michael S. Savett