Law360, New York (September 8, 2015, 3:53 PM EDT) -- A mason who performed work on a residential project was notified in 2006 that cracks had developed in his work. Several months later, the mason purchased a commercial general liability policy that expressly excluded coverage for property damage, if an insured "knew that the ... damage had occurred, in whole or in part." In 2007, the project's general contractor sued the mason, claiming that defects in his work had caused the property damage that was the subject of a suit by the project's residents. The mason's insurer denied coverage, and a federal district court supported its decision. But in Kaady v. Mid-Continent Casualty Co., No. 13-35036 (9th Cir. June 25, 2015), the U.S. Court of Appeals for the Ninth Circuit held that the policy's "known-loss" exclusion might have been drafted too narrowly to cover the facts of this case....