NJ Finally Joins Trend: Consequential Damage Is Covered

Law360, New York (August 4, 2015, 9:12 AM EDT) -- Frederic Giordano

Bob Pawlowski Over the past decade, courts have wrestled with the issue of whether consequential damage caused by a subcontractor’s faulty workmanship constitutes “property damage” caused by an “occurrence” under commercial general liability policies. Most courts that have addressed the issue have held that unexpected and unintended damages caused by faulty workmanship may qualify as covered “property damage” caused by an “occurrence.” Some courts, however, have found that the faulty workmanship giving rise to such damages does not constitute an “occurrence” because such defects are the expected consequences of poor workmanship. Until lately, some argued that New Jersey was...

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