The Firm Obtains Summary Judgment based on Faulty Workmanship Exclusion

In the case of J&S Commercial Construction v. Field of Dreams v. Great American Ins. Co. of New York, et al., the Supreme Court, Oneida County, recently granted Great American's motion for summary judgment based on the insurance policy's exclusion for faulty workmanship.  The case involved a newly built indoor sporting facility that allegedly required a complete reconstruction due to water damage.  The insured admitted that the water damage was caused by the faulty workmanship of its contractors - a cause specifically excluded by Great American's policy - but argued that the exclusion did not apply because the damage at issue constituted an ensuing loss excepted from the faulty workmanship exclusion.  In its decision rejecting the insured's argument, the Court relied on a case cited by the insured -- Montefiore Medical Center v. American Protection Ins. Co., 226 F. Supp.2d 470 (SDNY 2002), which held that: "An ensuing loss provision does not cover loss caused by the excluded peril, but rather covers loss caused to other property wholly separate from the defective property itself."  Further, the Court cited the fact that all the evidence in the record, which consisted of admissions and two expert affidavits from Great American's engineers, demonstrated that the loss was caused by design defect and faulty workmanship, which are specifically excluded.  The decision was reported on page 28 of the New York Law Journal Decisions of Interest, 2/9/2010 and at 2010 NY Slip Op 50201(U) [26 Misc 3d 1221(A)].  Great American was represented by Kevin F. Buckley and Daniel M. O'Connell of Mound Cotton Wollan & Greengrass.