The Travelers Property Casualty Company v. USA Container Co. (New Jersey)
CAI holds the position that USA Container's inadvertent faulty workmanship constitutes an “occurrence” (an accident or unintentional harm) inasmuch as insurers frequently take that position that there is no “occurrence” because the coverage policy was not intended to provide coverage where liability arises from the breach of contract or faulty workmanship, regardless of whether harm/damage was intended.
For condominium associations involved in transition litigation, obtaining coverage through the general contractors CGL policy may be the only means of obtaining a meaningful remedy for construction defects. Many courts have determined that Weedo v. Stone-E-Brick compels a no “occurrence” finding, defeating coverage regardless of whether coverage would be defeated by a policy’s exclusions, and notwithstanding that contractor negligence would appear to fall within the ordinary meaning of an “occurrence.” Compounding the collectability problem, some courts have adopted Weedo’s narrow view of an “occurrence.” USA Container obtained a favorable coverage determination which found that there was an “occurrence,” notwithstanding Traveler’s position that there was no “occurrence” pursuant to Weedo.
Brief: Pending
Prior Ruling: Lower Court Decision
Status: Pending
CAI Amicus Brief Author: Traci Rea, Esquire and Jay Levin, Esquire
CAI Amicus Brief Review Committee: Robert Diamond, Esq; Tom Moriarty, Esq; Jennifer Loheac, Esq; David Ramsey, Esq; Gary Daddario, Esq.