Ala. High Court Rules Defective Work Isn't An Occurrence

Law360, New York (September 25, 2013, 3:57 PM EDT) -- The Alabama Supreme Court on Friday excused Owners Insurance Co. from covering a lawsuit that blamed a general contractor for water leaks at a newly built $1.2 million home, finding the defective work did not lead to an “occurrence.”

The high court turned down arguments a policy that Owners issued to Jim Carr Homebuilder LLC covered the $600,000 awarded to the homeowners by an arbitrator in construction defect litigation.

Under Alabama law, whether defective construction work qualifies as an occurrence, or accident, depends on the nature...
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