{"id":492,"date":"2012-04-23T11:07:48","date_gmt":"2012-04-23T17:07:48","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=492"},"modified":"2012-05-07T14:02:54","modified_gmt":"2012-05-07T20:02:54","slug":"finally-a-cd-coverage-case-in-new-york","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/","title":{"rendered":"FINALLY, a CD Coverage Case in New York!!"},"content":{"rendered":"<p>Aquatectonics, Inc. d\/b\/a Loebs &amp; Gordon PoolCraft v.<\/p>\n<p>The Hartford Casualty Insurance Company<\/p>\n<p>Well, the attack on insureds via the restrictive definition of \u201coccurrence\u201d (a true double edged sword for carriers), continues to march forward this time right into the Empire State, a jurisdiction not known for a plethora of CD cases nor coverage opinions appurtenant thereto.<\/p>\n<p>Aquatectonics, Inc. d\/b\/a Loebs &amp; Gordon PoolCraft (\u201cLoebs\u201d) sought a defense and indemnity from its general liability carrier The Hartford Casualty Insurance Company (\u201cHartford\u201d) arising out of an action brought by the project general contractor against Loebs for the negligent installation of glass mosaic tiles in a custom-built swimming pool which necessitated removal and replacement of the mosaic tiles. The tile work was performed by Top Tile, a subcontractor retained by Loebs. The sole measure of damages incurred was the cost to remedy the defective workmanship.<\/p>\n<p>Hartford declined the tender asserting there was no \u201coccurrence\u201d within the meaning of the policy. In addition, Hartford declined coverage citing to the \u201cDamage to Your Property\u201d and \u201cDamage to Your Work\u201d exclusions. Loebs argued that as the work was performed by Top Tile, the Subcontractor Exception to the \u201cDamage to Your Work\u201d exclusion applied.<\/p>\n<p>Ruling in favor of Hartford, the U.S. District Court for the Eastern District of New York held there was no \u201coccurrence\u201d as the property damage alleged \u2013 the \u201csub-standard\u201d pool \u2013 arose out of faulty workmanship in the installation of the pool. Under New York law, as in a majority of jurisdictions, defective workmanship alone is not an \u201coccurrence\u201d under a CGL policy.<\/p>\n<p>With no New York or Second Circuit authority cited in support, the district court gave little consideration to the argument by Loebs that there was a \u201creasonable possibility of coverage\u201d under the Subcontractor Exception because the work was performed by a subcontractor.<\/p>\n<p>Here\u2019s the takeaway: The determination by the Aquatectonic court, at the outset, that damage solely to an insured\u2019s work product (the glass mosaic tile installed in the custom-built swimming pool) was not caused by an \u201coccurrence\u201d ended the coverage discussion. By concluding that coverage was not owed, because the \u201coccurrence\u201d requirement of the Insuring Agreement had not been satisfied, the exclusions did not need to be reached. In particular, there was no need for the court to reach the \u201cYour Work\u201d exclusion which really means that there was no need for the court to do a thorough analysis of the \u201cSubcontractor Exception\u201d to the \u201cYour Work\u201d exclusion. As a result, despite the fact that the pool installation contractor used a subcontractor to install the mosaic tiles, coverage nonetheless remained unavailable for damage caused by the work of the subcontractor.<\/p>\n<p>via <a href=\"http:\/\/www.linkedin.com\/groupAnswers?viewQuestionAndAnswers=&amp;discussionID=108212671&amp;gid=1808294&amp;trk=eml-anet_dig-b_nd-pst_ttle-cn&amp;ut=1FayKKfTXtr5c1\">FINALLY, a CD coverage case in New York!! | LinkedIn<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aquatectonics, Inc. d\/b\/a Loebs &amp; Gordon PoolCraft v. The Hartford Casualty Insurance Company Well, the attack on insureds via the restrictive definition of \u201coccurrence\u201d (a true double edged sword for carriers), continues to march forward this time right into the Empire State, a jurisdiction not known for a plethora of CD cases nor coverage opinions&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\">Continue reading <span class=\"screen-reader-text\">FINALLY, a CD Coverage Case in New York!!<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14,4,3],"tags":[19,68,3],"class_list":["post-492","post","type-post","status-publish","format-standard","hentry","category-construction-2","category-construction-defects","category-insurance-claims","tag-construction-defects-2","tag-faulty-workmanship","tag-insurance-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FINALLY, a CD Coverage Case in New York!! - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FINALLY, a CD Coverage Case in New York!! - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Aquatectonics, Inc. d\/b\/a Loebs &amp; Gordon PoolCraft v. The Hartford Casualty Insurance Company Well, the attack on insureds via the restrictive definition of \u201coccurrence\u201d (a true double edged sword for carriers), continues to march forward this time right into the Empire State, a jurisdiction not known for a plethora of CD cases nor coverage opinions&hellip; Continue reading FINALLY, a CD Coverage Case in New York!!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise &amp; Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2012-04-23T17:07:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2012-05-07T20:02:54+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"FINALLY, a CD Coverage Case in New York!!\",\"datePublished\":\"2012-04-23T17:07:48+00:00\",\"dateModified\":\"2012-05-07T20:02:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\"},\"wordCount\":465,\"commentCount\":10,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"construction defects\",\"faulty workmanship\",\"Insurance Claims\"],\"articleSection\":[\"Construction\",\"Construction Defects\",\"Insurance Claims\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/finally-a-cd-coverage-case-in-new-york\/\",\"name\":\"FINALLY, a CD Coverage Case in New York!! 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