Is there coverage for contruction defect claims in Colorado? Part 2: Did we go from bad to worse?

Relying heavily upon the reasoning of the General Sec. Indem. Co. of Arizona v. Mountain States Mut. Cas. Co., 205 P.3d 529 (Colo. App. 2009) court, the Federal District Court for Colorado closely examined whether the plaintiff’s complaints for damages that would constitute an “occurrence” under the relevant insurance policy. The court found only “conclusory references to consequential damages,” and a failure “to provide specifics by which [the insurance carrier] or [the] court could ascertain what those damages were and whether they involved something other than [the subcontractor’s] work product.” Greystone Const., 649 F.Supp. 2d at 1220. The Court went on to state that property damage only to the home itself was insufficient to create a duty to defend or indemnify under the subject commercial general liability insurance policy. Id.

For additional information regarding Colorado construction litigation, please contact David M. McLain at (303) 987-9813 or by e-mail at mclain@hhmrlaw.com.