Analysis

Calif. Ruling Fortifies Insureds In Building Damage Battles

Law360, Los Angeles (September 12, 2017, 10:00 PM EDT) -- A California appeals court last week rejected an insurer's argument that two defective workmanship exclusions broadly bar coverage for any damage to a subcontractor's project while work is in progress, instead bolstering policyholders locked in disputes over construction site damage by placing strict boundaries around the exclusions.

In the case, general contractor Kadena Pacific Inc. had convinced a jury that subcontractor Global Modular Inc. was contractually liable for over $1 million in costs tied to rain damage to prefabricated units that Global provided for the construction...
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