Article On Construction Defect Litigation from the PROFESSIONAL LIABILITY UNDERWRITING SOCIETY

Construction Defect Litigation in Arizona Continues to Develop and Evolve

After little in the way of case law regarding construction defect litigation in Arizona in the first part of the new millennium, the last few years have seen a number of significant developments involving issues that range from privity of contract requirements to recovery of attorneys’ fees. This article reviews some of the recent Arizona court of appeals decisions in this area.

Allegations of damages from faulty construction trigger a carrier’s duty to defend a developer and ongoing damages during the policy period trigger the obligation to defend.

In Lennar Corp. v. Auto-Owners Ins. Co., the Court of Appeals held that allegations of damages resulting from faulty construction are sufficient to provide an “occurrence” under a Commercial General Liability (hereinafter “CGL”) policy to trigger a duty to defend a developer. The court decision…READ THE REST BY CLICKING HERE

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