Defense Counsel Journal - International Association of Defense ...

Raising the Roof Page 487South Carolina: CrossmannCommunities of North Carolina, Inc. v.Harleysville Mutual Ins. Co., No. 26909,2011 WL 3667598 (S.C. Jan. 7, 2011).Occurrence? No. Defectiveconstruction, which only results indamage to the insured’s work, is nota claim for “property damage” andtherefore not an “occurrence.”However, if the insured’s defectivework results in damage to otherproperty, that damage is a covered“occurrence.” 43Insured’s work covered? No.South Dakota: Corner Const. Co. v.United States Fidelity & Guaranty Co.,638 N.W.2d 887 (S.D. 2002).Occurrence? Yes. To the extent asubcontractor’s work results indamage to the insured’s work, it isthe result of an “occurrence,”because it was not expected orintended by the insured.Insured’s work covered? Yes, butonly if it is the result of asubcontractor’s faulty work. If thedamage to the insured’s work is aresult of the insured’s faulty work,there is no “occurrence.”Tennessee: Travelers Indemnity Co. ofAm. v. Moore & Assoc., Inc., 216 S.W.3d302 (Tenn. 2007).Occurrence? Yes. Where damage tothe insured’s work was caused by asubcontractor’s defective work, thedamage was accidental from theinsured’s standpoint and therefore an“occurrence.”Insured’s work covered? Yes, butonly if it is the result of asubcontractor’s faulty work. If thedamage to the insured’s work is aresult of the insured’s faulty work,there is no “property damage.”Texas: Lamar Homes, Inc. v. Mid-Continent Casualty Co., 242 S.W.3d 1(Tex. 2007).Occurrence? Yes. As long as thedamage in question results from anaccident, i.e., negligence by theinsured, and is not intentional, thedamage resulted from a covered“occurrence.” There is no logicalbasis to determine whether thedamage was accidental based simplyon whether the property damagedwas the work product of the insuredor some other property.Insured’s work covered? Yes, as longas the work was done by asubcontractor. The court held thatthe subcontractor exception to the“your work” exclusion resurrectedcoverage which would otherwise bebarred.43 See L-J, Inc. v. Bituminous Fire & MarineIns. Co., 621 S.E.2d 33 (S.C. 2004).