Latest Flip-Flop On Faulty Work Morphs Coverage Battle

Law360, New York (June 24, 2013, 9:50 PM EDT) -- West Virginia's Supreme Court recently joined another state high court in flipping precedent and finding that liability policies can cover defective construction, solidifying the majority position on the high-stakes issue and shifting the focus of litigation to policy exclusions.

The top court ruled June 18 that defective workmanship that causes property damage or injuries constitutes an "occurrence," or accident, under Erie Insurance Property & Casualty Co.'s commercial general liability policy.

The ruling flies in the face of three of the court's decisions between 1999 and 2005,...
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