5th Circuit Asks Texas Supreme Court for Ruling on Construction Errors

NEW ORLEANS - The 5th Circuit Court of Appeals has asked the Texas Supreme Court to rule on whether construction errors are 'occurrences' resulting in covered 'property damage' under standard commercial general liability insurance policies. Lamar Homes Inc. v. Mid Continent Casualty Co., No. 04-51074 (5th Cir.).

The court said in a per curiam opinion on Oct. 3 that state and federal courts are divided on the issue.

'Given the frequency this issue is litigated and the copious amount of conflicting caselaw on both sides regarding whether construction errors causing damage to the subject of the contract constitute an 'occurrence'; …