In an insurance coverage action stemming from the construction of a new home in Marblehead, Massachusetts, Attorneys Michael Melville and Scott Ober successfully won an appeal related to an insurer’s duty to indemnify the general contractor. The homeowners sued a general contractor alleging issues throughout the home including structural defects, issues with a roof deck, siding issues, roofing issues, and mold.
Following a trial, the homeowners received an award for damages in excess of $272,000. Hassett | Donnelly filed an intervenor complaint in the action seeking declaratory judgment that the insurer did not have a duty to indemnify the defendant construction company under the policy for several reasons, including the argument that the faulty workmanship in building a new home was not “property damage” under the policy. Declaratory judgment was granted in favor of the insurer, but the homeowner appealed the decision. More than a decade of interest could have been awarded if the homeowners were successful with their appeal.
On August 14, 2024, the Appeals Court affirmed the lower court’s ruling and held, in an issue of first impression, that “construction defects, standing alone, do not constitute property damage within the meaning of a commercial general liability policy” and that the insurer had no duty to indemnify the general contractor.
To read the full decision, click here. LAWRENCE H. LESSARD & another vs. R.C. HAVENS & SONS, INC., & others. Mass. App. Ct. No. 23-P-346. (August 14, 2024)
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