{"id":899257,"date":"2021-10-20T14:38:52","date_gmt":"2021-10-20T20:38:52","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899257"},"modified":"2021-10-20T14:38:55","modified_gmt":"2021-10-20T20:38:55","slug":"property-damage-defective-component","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/property-damage-defective-component\/","title":{"rendered":"Eleventh Circuit Finds No \u201cProperty Damage\u201d Where Defective Component Failed to Cause Damage to Other Non-Defective Components"},"content":{"rendered":"\n<p>Anthony L. Miscioscia and margo Meta | <a href=\"https:\/\/www.whiteandwilliams.com\/resources-alerts-Eleventh-Circuit-Finds-No-Property-Damage-Where-Defective-Component-Failed-to-Cause-Damage-to-Other-Non-Defective-Components.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">White &amp; Williams<\/a><\/p>\n\n\n\n<p>In Florida, damage caused by faulty workmanship constitutes \u201cproperty damage;\u201d however, the cost of repairing or removing defective work does not.&nbsp;<em>Amerisure Mutual Insurance Company v. Auchter Company<\/em>, 673 F.3d 1294 (11<sup>th<\/sup>&nbsp;Cir. 2012) (<em>Auchter<\/em>). But what happens when the cost of repairing or removing defective work results in loss of use of the tangible property which is not physically injured?<\/p>\n\n\n\n<p>The United States Court of Appeals for the Eleventh Circuit was recently faced with this question in&nbsp;<em>Tricon Development of Brevard, Inc. v. Nautilus Insurance Company<\/em>, No. 21-11199, 2021 U.S. App. LEXIS 27317 (11th Cir. Sep. 10, 2021).&nbsp;<em>Tricon&nbsp;<\/em>arose out of the construction of a condominium. Tricon was hired to serve as general contractor for the project and hired a subcontractor to fabricate and install metal railings. The railings installed by the subcontractor were defective and damaged, improperly installed, and failed to meet the project\u2019s specifications. Tricon filed an insurance claim with Nautilus Insurance Company, the subcontractor\u2019s commercial general liability insurer, for the cost to remove and replace the railings.<a href=\"https:\/\/www.whiteandwilliams.com\/resources-alerts-Eleventh-Circuit-Finds-No-Property-Damage-Where-Defective-Component-Failed-to-Cause-Damage-to-Other-Non-Defective-Components.html#_ftn1\">[1]<\/a><\/p>\n\n\n\n<p>Relying on\u00a0<em>Auchter<\/em>, the court concluded that the repair and removal of defective work does not constitute \u201cproperty damage\u201d. The court rejected Tricon\u2019s contention that\u00a0<em>Auchter<\/em>\u00a0failed to consider that the repair and removal of defective components may result in a \u201closs of use of tangible property that is not physically injured\u201d, and thus, qualify as \u201cproperty damage\u201d. It noted that the\u00a0<em>Auchter<\/em>\u00a0court held that \u201cafter interpreting the policy as a whole [and] \u2018endeavoring to give every provision its full meaning and operative effect\u2019\u201d there was no coverage for the defective installation. The Eleventh Circuit therefore concluded that \u201cthe\u00a0<em>entire\u00a0<\/em>definition of \u2018property damage\u2019 in the post-1986 standard form commercial general liability policy must fail to cover the kinds of costs that Tricon incurred from its subcontractor\u2019s deficient work.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><a href=\"https:\/\/www.whiteandwilliams.com\/resources-alerts-Eleventh-Circuit-Finds-No-Property-Damage-Where-Defective-Component-Failed-to-Cause-Damage-to-Other-Non-Defective-Components.html#_ftnref1\">[1]<\/a>&nbsp;Tricon was an additional insured under the subcontractor\u2019s policy for liability for \u201cproperty damage\u201d caused, in whole or in part by the subcontractor\u2019s direct or vicarious acts or omissions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Anthony L. Miscioscia and margo Meta | White &amp; Williams In Florida, damage caused by faulty workmanship constitutes \u201cproperty damage;\u201d however, the cost of repairing or removing defective work does not.&nbsp;Amerisure Mutual Insurance Company v. Auchter Company, 673 F.3d 1294 (11th&nbsp;Cir. 2012) (Auchter). But what happens when the cost of repairing or removing defective work&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/property-damage-defective-component\/\">Continue reading <span class=\"screen-reader-text\">Eleventh Circuit Finds No \u201cProperty Damage\u201d Where Defective Component Failed to Cause Damage to Other Non-Defective Components<\/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":[11092,9721],"tags":[9895,68,94,56],"class_list":["post-899257","post","type-post","status-publish","format-standard","hentry","category-faulty-workmanship","category-property-damage","tag-advise-consult","tag-faulty-workmanship","tag-florida","tag-property-damage","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>Eleventh Circuit Finds No \u201cProperty Damage\u201d Where Defective Component Failed to Cause Damage to Other Non-Defective Components - Advise &amp; 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