Nationwide Mutual Insurance Company recently filed a declaratory judgment action in the United States District Court for the Western District of North Carolina to obtain a ruling that its commercial general liability policy does not cover the insured builder for faulty workmanship. In Nationwide Mutual Insurance Company v. Hyde, Nationwide requests a declaratory judgment that coverage is not owed to a builder who was sued by homeowners for property damage that occurred as a result of the insured constructing the home on top of improperly compacted fill soil. The homeowners were awarded $350,000.00 in damages in an underlying suit against
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Archives for Construction Defect
New Jersey Trial Court Rejects Application of “Continuous Trigger” Theory to Construction Defect Claim That Manifested Before Policy Period
The Superior Court, Law Division, of Hudson County, New Jersey has held that a claimant is not entitled to seek coverage under a liability insurance policy pursuant to a “continuous trigger” theory for damage that occurred prior to the policy period. Cypress Point Condominium Ass’n v. Selective Way Ins. Co. concerns a lawsuit filed against numerous contractors involved in the construction of a condominium complex. The lawsuit contended that water infiltration occurred at the windows of condominium units. One of the contractors procured insurance with the defendant insurer in between the time the contractor had been named in an amended
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Suits Alleging Defective Decks Centralized in New Jersey
The Judicial Panel on Multidistrict Litigation has ordered that pre-trial proceedings in twelve putative class actions alleging defects in composite outdoor decking materials be coordinated or consolidated in the United States District Court for the District of New Jersey. The suits contend that decking materials sold by GAF Materials Corp. tend to warp, crack, and swell. The suits also allege that these materials develop mold, mildew, and fungus, resulting in discoloration. The actions include claims for violation of consumer protection laws, breach of warranty, and unjust enrichment. The Order covers six cases that originated in Colorado, Illinois, Indiana, Iowa, North
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