Michigan Supreme Court Clarifies Decades-Old Dispute and Holds that Subcontractor’s Unintentional Defective Work Constitutes an “Accident” and “Occurrence” Granting Construction Manager CGL Coverage

Jay Berger | Clark Hill In Skanska USA Building Inc v MAP Mechanical Contractors, Inc, (Michigan Supreme Court, Docket Nos. 159510-159511, June 29, 2020) the Michigan Supreme Court held, in a unanimous decision, that a subcontractor’s unintentional defective work is an “accident” and, therefore, an “occurrence” covered under a Commercial General Liability (CGL) policy, allowing insurance… Continue reading Michigan Supreme Court Clarifies Decades-Old Dispute and Holds that Subcontractor’s Unintentional Defective Work Constitutes an “Accident” and “Occurrence” Granting Construction Manager CGL Coverage

Michigan Supreme Court Holds a Contractor’s Defective Work Is an ‘Occurrence’

Scott R. Murphy and Anthony C. Sallah | Barnes & Thornburg In Skanska USA Building v M.A.P Mechanical Contractors, Inc., Docket No. 159510, ____ Mich ____, 2020 WL 3527909, the Michigan Supreme Court found that a subcontractor’s inadvertent faulty work may constitute an “accident” under Michigan law, and therefore constitute an accidental “occurrence” under current standard form… Continue reading Michigan Supreme Court Holds a Contractor’s Defective Work Is an ‘Occurrence’

Michigan Supreme Court Opens Door to CGL Claims for Construction Defects

Jeffrey L. Hamera | Duane Morris The Michigan Supreme Court overturned precedent and joined the jurisdictions that allow damages arising from construction defects to be the basis of a claim against a subcontractor’s comprehensive general liability (“CGL”) policy written on a 1986 ISO form. This decision opens the door to CGL claims for construction defects… Continue reading Michigan Supreme Court Opens Door to CGL Claims for Construction Defects

Enhancing The Prospects For Contractors To Have Insurance Coverage For Their Subcontractors’ Defective Work

Gregory P. Parsons and J.P. Stilz | Stites & Harbison I. INTRODUCTION. When a construction contractor engages in a construction project, it generally purchases a commercial general liability policy (“CGL”) to broadly cover it and, frequently, the property owner for claims that might arise during the course of construction. These insurance contracts are standard forms… Continue reading Enhancing The Prospects For Contractors To Have Insurance Coverage For Their Subcontractors’ Defective Work

U.S. Eighth Circuit Court of Appeals Holds No CGL Insurance Coverage for Damages Arising from Contractor’s Shoddy Work

Gregory M. Boucher | Saul Ewing Arnstein & Lehr On May 12, 2020, the United States Eight Circuit Court of Appeals, applying Missouri law, rejected a contractor’s contention that its commercial general liability (CGL) policy provided coverage for claims arising out of the contractor’s allegedly defective construction work. See Am. Family Mut. Ins. Co., S.I. v.… Continue reading U.S. Eighth Circuit Court of Appeals Holds No CGL Insurance Coverage for Damages Arising from Contractor’s Shoddy Work