No Coverage for Misrepresentation, Failure to Disclose Claims in Wis. Case

GREEN BAY, Wis. - Allegations that homeowners misrepresented the condition of their home or failed to disclose defects cannot be 'accidents' and are not covered by their occurrence-based insurance policies, a Wisconsin federal judge ruled on Aug. 10. Eberts v. Goderstad, et al., No. 05-C-527 (E.D. Wis.).

Judge William C. Griesbach of the U.S. District Court for the Eastern District of Wisconsin explained that the issue was decided in favor of insurers by the Wisconsin Supreme Court in Everson v. Lorenz (3005 WI 51, 695 N.W.2d 298 [Wis. 2005]).

'The supreme court found that the seller's misrepresentation - whether negligent, …