Insured’s Defective Work Is Not An ‘Occurrence,’ Federal Judge Concludes
Mealey's (October 7, 2016, 9:58 AM EDT) -- PHILADELPHIA — Under Pennsylvania law, allegations of an insured’s faulty workmanship do not constitute an “occurrence,” a Pennsylvania federal judge ruled Oct. 5, finding that a comprehensive business liability insurer has no duty to defend or indemnify an underlying negligent construction lawsuit (State Farm Fire and Casualty Co. v. Kim’s Asia Construction, No. 15-6619, E.D. Pa.; 2016 U.S. Dist. LEXIS 138915).
(Memorandum available. Document #69-161104-001Z.)
In December 2011, Kim’s Asia Construction contracted with Powerline Imports Inc. to remove and dispose of its existing roof and install...