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Faulty Workmanship Not An "Occurrence" Insurance; Workmanship

Friday, September 03, 2004 02:44 pm

Faulty Workmanship Not An "Occurrence" Insurance; Workmanship

The South Carolina Supreme Court has ruled that faulty grading and paving did not constitute an "occurrence" within the meaning of a contractor's commercial general liability (CGL) insurance policy.

Dunes West Joint Venture awarded a contract to L-J, Incorporated to perform site preparation and road construction in a subdivision in Mount Pleasant. L-J performed the work in 1989 and 1990. Four years later, the road surfaces began to crack and deteriorate.

Expert investigation established that the cause of the premature deterioration was improper preparation and compacting of [...]

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