New Jersey Supreme Court Grants Review of Faulty-Workmanship Insurance Coverage Decision
The New Jersey Supreme Court has agreed to review this summer’s Appellate Division decision in Cypress Point Condominium Association v. Adria Towers, LLC, which held that unintended and unexpected consequential damages caused by a construction subcontractor’s defective work constitute both “property damage” and an “occurrence” under a standard general liability policy. (Background and an analysis of the Appellate Division decision can be viewed here.)
The Cypress Point decision upended existing New Jersey law as to whether the subcontractors’ negligence could qualify as an “occurrence” and whether resulting damages to other parts of the construction project could constitute “property damage” for purposes of the standard commercial liability policy insuring agreement.
The Supreme Court is not expected to issue its ruling until late 2016 or early 2017.