Is My Drywall Chinese? - HB Litigation Conferences

Other Exclusions
“Business Business risk” risk exclusions:
– General rule
– Own Product/Own Work Exclusion – Subcontractor
exception
Exception: Does not apply if the damaged work or the work
out of which the damage arises was performed on your
behalf by a subcontractor.
Stonewall v. Asbestos Claims Mgmt. Corp., Corp. , 73 F.3d 178 (2d
Cir. 1995) (own product exclusion rejected because of
damage to other property).
– “Impaired Impaired property” property exclusion:
Not applicable if property is not injured, restored to use.
Hopelessly ambiguous.
Occurrence
Other Issues
– “An An accident, including continuous or repeated exposure to
substantially the same general harmful conditions.”
conditions.
Number of occurrences
– Cause test: E.g., E.g. , Owens-Illinois Owens Illinois v. Aetna Cas. & Sur. Co., Co. , 597 F. Supp.
1515 (D.D.C. 1984).
– Unfortunate events test
– Recent case of Stanley Martin Cos. v. Ohio Cas. Group, Group,
2009
WL 367589 (4 th Cir. Feb. 12, 2009): The Court reaffirmed that an
insured general contractor cannot seek recovery for damage
caused by its own faulty workmanship; however, court also said
that, that,
where a subcontractor also causes damage to other non- non
defective components of a project, the resulting losses may be
covered.
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