Insurer Liable For Construction Damages: Ga. Court

Law360, New York (March 7, 2011, 5:11 PM EST) -- Georgia's highest court ruled Monday that American Empire Surplus Lines Insurance Co. was liable for damages arising from shoddy construction, deciding that poor work constituted an occurrence covered under a commercial general liability policy.

The Supreme Court of Georgia upheld an appeals court ruling in favor of general contractor Hathaway Development Co. Inc. that had sought its subcontractor Whisnant Contracting Co. Inc.'s insurer, AESLIC, to cover costs from repairing property damaged by negligent plumbing work.

At three job sites, Whisnant installed the wrong pipe on an...
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