{"id":898125,"date":"2020-10-21T14:07:10","date_gmt":"2020-10-21T20:07:10","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898125"},"modified":"2020-10-21T14:07:12","modified_gmt":"2020-10-21T20:07:12","slug":"occurrence-triggering-cgl","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/","title":{"rendered":"Are Untimely Repairs an \u201cOccurrence\u201d Triggering CGL Coverage?"},"content":{"rendered":"\n<p>Christopher G. Hill | <a href=\"https:\/\/constructionlawva.com\/are-untimely-repairs-an-occurrence-triggering-cgl-coverage\/?utm_source=feedburner&amp;utm_medium=email&amp;utm_campaign=Feed%3A+ConstructionLawMusings-RichmondVa+%28Construction+Law+Musings-+Richmond%2C+VA%29\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Construction Law Musings<\/a><\/p>\n\n\n\n<p>All Class A commercial contractors in Virginia are required to have a minimum level of <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/cgl-provides-no-coverage-for-insureds-work\/\">Commercial General Liability (CGL) coverage<\/a>.\u00a0 As a general rule, this insurance is there for damage to property or persons arising from an \u201coccurrence\u201d that is covered by the policy.\u00a0 Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/defining-occurrence-policy-definitions\/\">definition of \u201coccurrence\u201d<\/a> and whether the event leading to a request for coverage constitutes an \u201coccurrence.\u201d<\/p>\n\n\n\n<p>A recent case in Fairfax County, Virginia,\u00a0Erie Insurance Exchange v. Spalding Enterprises, et al., is just such a case.\u00a0 In the\u00a0Spalding Enterprises\u00a0case, the Court considered the following scenario.\u00a0 A homeowner, Mr. Yen contracted with Spalding Enterprises to fix some fire damage at his home.\u00a0 Spalding promised the repairs would be complete in October of 2019.\u00a0 However, after Mr. Yen paid a $300,000.00 deposit, Spalding Enterprises stated that the work would not be completed until November of 2019.\u00a0 Yen then fired Spalding Enterprises and sued for breach of contract, constructive fraud, and violation of the Virginia Consumer Protection Act.\u00a0 Spalding Enterprises sought coverage from Erie Insurance for the claim and Erie denied coverage and sought a declaratory judgment that the events alleged in the Complaint by Mr. Yen did not fall under the definition of \u201coccurrence\u201d in the CGL policy held by Spalding Enterprises.<\/p>\n\n\n\n<p>After discussing the definition of occurrence in the policy and the law in Virginia that generally precludes intentional acts from that definition where the result of the intentional act is a natural or probable consequence of that intentional act, the Court stated:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Here, Mr. Yen\u2019s detrimental reliance is unquestionably a natural or probable consequence of the misrepresentations made upon which Mr. Yen was intended to rely. It follows that any alleged constructive fraud in the complaint is not an occurrence under Spaulding Enterprise\u2019s CGL policy with Erie.<\/p><\/blockquote>\n\n\n\n<p>Because the fraud allegations (set out in more detail in the opinion) stated that the damages directly arose from the actions of Spalding Enterprises, the Court agreed with Erie and stated that the allegations in the factual allegations found in the Complaint did not constitute an \u201coccurrence\u201d under the policy.<\/p>\n\n\n\n<p>The takeaways (aside from having an\u00a0experienced Virginia construction attorney\u00a0assist with any of these tricky issues) are 1. CGL policies do not cover everything and 2. be sure to carefully read any policy documents because the Virginia courts will look at the specific language very carefully in determining if coverage applies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Christopher G. Hill | Construction Law Musings All Class A commercial contractors in Virginia are required to have a minimum level of Commercial General Liability (CGL) coverage.\u00a0 As a general rule, this insurance is there for damage to property or persons arising from an \u201coccurrence\u201d that is covered by the policy.\u00a0 Many cases that are&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/\">Continue reading <span class=\"screen-reader-text\">Are Untimely Repairs an \u201cOccurrence\u201d Triggering CGL Coverage?<\/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":[10791,30],"tags":[9895,5496,347,4739],"class_list":["post-898125","post","type-post","status-publish","format-standard","hentry","category-commercial-general-liability-policy","category-general-liability-policy","tag-advise-consult","tag-cgl-coverage","tag-cgl-policy-occurrence","tag-commercial-general-liability-policy","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>Are Untimely Repairs an \u201cOccurrence\u201d Triggering CGL Coverage? - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of \u201coccurrence\u201d\" \/>\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\/occurrence-triggering-cgl\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Untimely Repairs an \u201cOccurrence\u201d Triggering CGL Coverage? - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Many cases that are litigated relating to coverage for certain events under a CGL policy turn on the definition of \u201coccurrence\u201d\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/\" \/>\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=\"2020-10-21T20:07:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-21T20:07:12+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\/occurrence-triggering-cgl\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Are Untimely Repairs an \u201cOccurrence\u201d Triggering CGL Coverage?\",\"datePublished\":\"2020-10-21T20:07:10+00:00\",\"dateModified\":\"2020-10-21T20:07:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/\"},\"wordCount\":424,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise &amp; Consult\",\"CGL Coverage\",\"CGL Policy Occurrence\",\"Commercial General Liability Policy\"],\"articleSection\":[\"Commercial General Liability Policy\",\"General Liability Policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/occurrence-triggering-cgl\/\",\"name\":\"Are Untimely Repairs an \u201cOccurrence\u201d Triggering CGL Coverage? 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