Insurer Has No Duty to Defend Subcontractor That Installed Defective Tie Hooks

Gordon & Rees partner Arthur Schwartz and associate Steven R. Inouye recently wrote an Insurance Law Update that analyzes a California Court of Appeal decision that should be of interest to various construction-related entities, including owners, contractors and subcontractors.

In Regional Steel Corp. v. Liberty Surplus Ins. Corp., the court held that the insurer did not have a duty to defend a steel subcontractor because its installation of defective tie hooks did not constitute “property damage” under a commercial general liability (CGL) policy, even though the surrounding concrete needed to be demolished when the tie hooks were removed.

To read the article – “Building Code Violations Requiring Removal of Nonhazardous Materials Do Not Constitute ‘Property Damage’ Under CGL Policy” – click here.