Texas contractors recently received a Texas-sized victory on the construction defect frontier that likely will serve as ammunition for contractors in other states.
At summer's end, the Texas Supreme Court held that unintended construction defects may constitute an "occurrence" and "property damage" under a builder's standard commercial general liability (CGL) policy sufficient to trigger an insurer's duty to defend. In Lamar Homes v. Mid-Continent Casualty Company, the court refuted Casualty Company, the court refuted the arguments set forth by insurers.
Reprinted from Construction Executive, December 2007, a publication of Associated Builders and Contractors. Copyright 2007. All rights reserved.