5th Circuit Reaffirms 'Occurrence' as Date of Damage



DOCUMENTS
  • Opinion


NEW ORLEANS - In addressing an appeal over coverage for a faulty foundation, a federal appellate court followed a recent Texas Supreme Court holding that defined an "occurrence" under a commercial general liability insurance policy as when the damage happened, not when it was discovered. Wilshire Insurance Co. v. RJT Construction LLC, No. 08-50925 (5th Cir.).

The 5th Circuit also ruled that subsidence exclusion did not apply to preclude damage for the insured contractor and reversed a trial court holding that Wilshire Insurance Co. was not obligated to defend.

Wilshire wrote consecutive CGL policies for RJT Construction Inc. between June …






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