WWM wins summary judgment and a finding of no coverage for its insurer client in Indiana State Court. Earlier this month, an Indiana State Court found no coverage for a multimillion dollar judgment in a construction defect case. WWM attorney Peter Daniels argued and prepared the motion, with the assistance of WWM attorneys Joe Borders and Brad Bernau. The case arose after the policyholder, a general contractor, was sued for allegedly defective construction. Having built numerous homes, the general contractor soon found itself the target of a class action lawsuit. On the eve of trial, the general contractor settled with the class for a complete release and an assignment of its claims against various insurers. A declaratory judgment followed, with cross motions for summary judgment filed by the underlying class plaintiffs and WWM’s client.
In its motion for summary judgment, WWM argued that claims for defective construction are not accidental and therefore not an “Occurrence” as defined by the policy. We also argued that the damages, which were limited to structures of the homes themselves, did not qualify as “Property Damage.” On the other hand, the plaintiffs (standing in the shoes of the general contractor) argued that because the work was performed by subcontractors, it was “accidental” in so far as the general contractor was concerned. The plaintiffs also argued that “Property Damage” existed because the work of one subcontractor damaged the work of another. Finally, the plaintiffs argued that an exclusion in the policy rendered the insuring agreement ambiguous. Resolving these issues in favor of WWM’s client, the Court held that there was no “Occurrence,” no “Property Damage” and therefore no coverage. Continental Casualty Co. v. Sheehan Const. Co., no. 49F12-0702-PL-007751, Marion Superior Court.
