Penna. National Ins. Co. v. Parkshore Develop. Corp.

Outcome: Affirmed summary judgment for insurer

Description: In a significant win for liability insurers in New Jersey, a panel of the Third Circuit Court of Appeals ruled that there is no coverage for faulty workmanship claims against a general contractor even when the work was performed by subcontractors. The decision affirmed a trial court ruling that there is no “occurrence” under a general liability policy where the only damage was to the construction project itself. With this opinion, the Third Circuit has aligned itself with other courts nationwide that have endorsed insurers’ rights to deny coverage for construction-defect claims so long as there is no third-party property damage.