Will the Texas Supreme Court Get Construction Defect Coverage Right?

November 14, 2012
CDJ STAFF

Lee H. Shidlofsky, of the Shidlofsky Law Firm PLLC, has posted an informative presentation on the current state of construction defect coverage law in Texas. Mr. Shidlofsky practices in Austin, Texas, with a focus on corporate policyholders in disputes with insurance companies. Additionally, they provide risk-management consulatation. Mr. Shidlofsky starts by noting that CGL polices “are not performance bonds,” and that the risk of faulty workmanship is “assumed by the insured.”

In order to untangle the situation with Texas construction defect coverage law, Mr. Shidlofsky discusses three cases: Lamar Homes (2007), Gilbert (2010), and Ewing (2012), asking the question if legal views of the liability exclusion is moving away from Lamar Homes. He compares both Lamar Homes and Gilbert to Ewing. He concludes by noting that the next step is the Texas Supreme Court, asking “will they get it right?”



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