Ohio Supreme Court Finds Construction Defects Do Not Arise From An Occurrence

November 8, 2012
TRED EYERLY, INSURANCE LAW HAWAII

The Ohio Supreme Court recently determined that underlying obligations of defective workmanship are not claims for "property damage" caused by an "occurrence." Westfield Ins. Co. v. Custom Agri. Systems, Inc., 2012 Ohio LEXIS 2485 (Ohio Oct. 16 2012).

The case evolved from a certified question from the United States Court of Appeals for the Sixth Circuit. A property owner sustained damages from defects in a steel grain bin constructed by the insured, Custom Agri Systems, Inc. When the property owner sued, Custom tendered the suit to Westfield, its insurer. Westfield argued none of the claims against Custom for defective construction or consequential damages resulting from the defective construction were "property damage" caused by an "occurrence."

Mr. Eyerly can be contacted at te@hawaiilawyer.com



714.701.9180

Arrange No Cost Consultation










Subscribe to Construction Defect Journal

 

Construction Defect Journal is aggregated from a variety of news sources, article submissions, contributors, and information from industry professionals.

No content on this site should be construed as legal advice or expert opinion. By viewing this site you agree to be bound by its terms and conditions

 

Copyright 2018 - Construction Defect Journal – All Rights Reserved