Second Circuit Finds That Defective Work Can Be Covered As An “Occurrence” Under CGL Policy

April 9, 2013

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Scottsdale Insurance Co. v. R.I. Pools Inc., et al.

     In a recent Second Circuit decision, the court found that certain defective construction work can be considered an “occurrence” under a Commercial General Liability policy.  In Scottsdale Insurance Co. v. R.I. Pools Inc., et al., Docket No. 11-3529-cv (2d. Cir. March 21, 2013), the Second Circuit reversed the District Court’s granting of summary judgment in favor of Scottsdale.

     The case arose out of claims against R.I. Pools, which had been hired to install swimming pools.  R.I. Pools in turn hired subcontractors to supply concrete and perform the concrete pours.  Several pools subsequently developed cracking and a number of purchasers sued R.I. Pools for the damage.  Scottsdale insured R.I. Pools under a commercial general liability (“CGL”) policy.  Scottsdale filed a declaratory judgment action against R.I. Pools to determine whether the claims of the pool purchasers were covered losses.  The District Court granted summary judgment in favor of ... read more.