{"id":895249,"date":"2018-11-29T12:09:51","date_gmt":"2018-11-29T19:09:51","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=895249"},"modified":"2018-11-29T12:09:51","modified_gmt":"2018-11-29T19:09:51","slug":"third-circuit-holds-no-coverage-faulty-workmanship-despite-insureds-expectations","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/third-circuit-holds-no-coverage-faulty-workmanship-despite-insureds-expectations\/","title":{"rendered":"Third Circuit Holds No Coverage for Faulty Workmanship Despite Insured\u2019s Expectations"},"content":{"rendered":"<p>Brian Margolies | <a href=\"http:\/\/tlsslaw.com\/insurance-law\/2018\/1120\/11854\/\" target=\"_blank\" rel=\"noopener\">Traub Lieberman Straus &amp; Shrewsberry LLP<\/a> | November 20, 2018<\/p>\n<p>In its recent decision in\u00a0<em>Frederick Mut. Ins. Co. v. Hall<\/em>, 2018 U.S. App. LEXIS 31666 (3d Cir. Nov. 8, 2018), the United States Court of Appeals for the Third Circuit had occasion to consider Pennsylvania\u2019s doctrine of reasonable expectations in the context of a faulty workmanship claim.<\/p>\n<p>Hallstone procured a general liability policy from Frederick Mutual to insure its masonry operations.\u00a0Notably, when purchasing the policy through an insurance broker, Hallstone\u2019s principal stated that he wanted the \u201cmaximum\u201d \u201csoup to nuts\u201d coverage for his company.\u00a0 Hallstone was later sued by a customer for alleged defects in its masonry work.\u00a0 While Frederick agreed to provide a defense, it also commenced a lawsuit seeking a judicial declaration that its policy excluded coverage for faulty workmanship.\u00a0The district court agreed that the business risk exclusions applied, but nevertheless found in favor of Hallstone based on the argument that Hallstone had a reasonable expectation that when applying for an insurance policy affording \u201csoup to nuts\u201d coverage, it this would include coverage for faulty workmanship claims.<\/p>\n<p>On appeal, the Third Circuit acknowledged that the reasonable expectations doctrine can overrule policy language when the insured is issued a policy different than what it specifically requested to purchase.\u00a0 The court nevertheless reasoned that this doctrine did not apply to Hallstone, which generally asked for a broad policy, but not specifically a policy that would insure faulty workmanship claims \u2013 a coverage the court acknowledged does not exist.\u00a0 The pointed out the absurdity of relying on the reasonable expectations doctrine to overcome the policy\u2019s otherwise plain and unambiguous language, observing that \u201cHall\u2019s claim that he expected Hallstone\u2019s \u2018maximum,\u2019 \u2018soup to nuts\u2019 liability policy to include workmanship coverage is no more reasonable than if a purchase of auto insurance expected his policy to cover repairs if his car breaks down, even if he asked for \u2018soup to nuts\u2019 coverage.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brian Margolies | Traub Lieberman Straus &amp; Shrewsberry LLP | November 20, 2018 In its recent decision in\u00a0Frederick Mut. Ins. Co. v. Hall, 2018 U.S. App. LEXIS 31666 (3d Cir. Nov. 8, 2018), the United States Court of Appeals for the Third Circuit had occasion to consider Pennsylvania\u2019s doctrine of reasonable expectations in the context&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/third-circuit-holds-no-coverage-faulty-workmanship-despite-insureds-expectations\/\">Continue reading <span class=\"screen-reader-text\">Third Circuit Holds No Coverage for Faulty Workmanship Despite Insured\u2019s Expectations<\/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":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[4,3],"tags":[9895,68,3],"class_list":["post-895249","post","type-post","status-publish","format-standard","hentry","category-construction-defects","category-insurance-claims","tag-advise-consult","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>Third Circuit Holds No Coverage for Faulty Workmanship Despite Insured\u2019s Expectations - Advise &amp; 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