NJ Justices Rescue Builders From Limbo In Faulty Work Case

Law360, Los Angeles (August 4, 2016, 9:46 PM EDT) -- New Jersey's high court ruled Thursday that damages stemming from a subcontractor's faulty workmanship can be covered under a general contractor's commercial general liability policy, blunting a decades-old precedent that insurers have wielded to deny coverage for such claims and providing clarity for builders embroiled in defect litigation, experts say.

In a unanimous opinion, the New Jersey justices affirmed a state appeals court's July 2015 ruling that damage to the common areas of a Hoboken luxury condominium complex and to unit owners' property caused by subcontractors' defective work constitutes "property damage" and an accidental "occurrence" under the general contractor's commercial general...

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