Hawaii Appellate Court Declines to Define Defect as CGL 'Occurrence'

HONOLULU - The Hawaii Intermediate Court of Appeals has affirmed an order dismissing an indemnification claim against the insurer for a siding and insulation contractor, holding that alleged construction defects do not constitute "occurrences" under comprehensive general liability policies. Group Builders Inc., et al. v. Admiral Insurance Co., et al., No. 29402 (Hawaii Ct. App.).

In a published opinion issued on May 9, the court acknowledged a split of authority in federal case law, but said it agreed with the majority in deciding against CGL coverage for breach-of-contract claims "based on shoddy performance."

Group Builders Inc. appealed from an order …