Todd Rossi

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According to the Louisiana Supreme Court, a commercial general liability policy unambiguously excluded coverage for a contractor’s faulty workmanship. Supreme Services & Specialty Co. Inc. v. Sonny Greer, 958 So.2d 634 (La. 2007). The homeowner instituted legal action claiming that cracks in the slab were the result of faulty and defective design and construction, alleging causes of action based on breach of contract and breach of warranty. Relying on the “work product” exclusion in the policy, the court recognized that it reflected the insurance company’s intent to “avoid the possibility that coverage under a CGL policy will be used to repair and replace the insured’s defective products and faulty workmanship.”
Continue Reading Contractors’ Faulty Workmanship Not Covered by Insurance Policy

Insureds have the burden of first establishing insurance coverage. Typically, that involves providing evidence of damage occurring during the policy period resulting from an accident. Hurricane Katrina and its consequences should easily meet these requirements. Once the insured establishes facts that would provide coverage, the insurers must show that a policy exclusion precludes coverage. In some instances, the insurers can rely solely on the policy language, but in other instances, the insurers may have to marshal facts that support one or more exclusionary provisions.
Continue Reading Potential Katrina Coverage Arguments

Hurricane Katrina is the most costly natural catastrophe in U.S. history. While the adverse effects on Louisiana, Alabama, and Mississippi residents are evident, this disaster will probably have a tremendous impact on insurers who have not faced an exposure from a catastrophe of this nature. While Hurricane Andrew and the other major storms that followed Andrew significantly affected residential property, Katrina’s wrath affected both a major American city and an entire region. Consequently, the insurance industry faces large and widespread claims and massive and unanticipated losses. Coupled with anticipated aggressive claims positions by insureds, probable pressure from reinsurers, extensive attorney involvement, and clashing personalities, the claims process will be difficult at best.
Continue Reading Business Interruption Coverage After Katrina

Business executives who face commercial lawsuits as plaintiffs or defendants understand the effect litigation has on a business. The following article addresses seven important issues that savvy business owners should be aware of – in the boardroom and in the courtroom – when it comes to commercial litigation.
Continue Reading Commercial Litigation: Seven Practical Tips