NJ Justices Weigh Edge For Builders In Defect Coverage Suits

By Jeff Sistrunk (November 5, 2015, 9:43 PM EST) -- New Jersey's highest court has agreed to decide whether damages resulting from a subcontractor's defective work on a condominium complex triggered an insurer's duty to defend the general contractor, and attorneys say a ruling favoring the condo association could eliminate an easy out for carriers in construction defect coverage suits.

The New Jersey Supreme Court on Tuesday granted certification to tackle the Appellate Division's July ruling that consequential damages to the common areas of a condo complex and unit owners' property caused by subcontractors' defective work are "property damage" and an "occurrence" under the general contractor's commercial general liability policy....

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