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Insurance Coverage for Damages Arising from Defective Construction

Posted By David R. Cook Jr., Autry, Cole, Hanrahan, Hall & Cook, LLP, Thursday, March 20, 2014
One of the first considerations of most attorneys is whether insurance coverage is available to remedy their client's loss or potential loss. Yet many attorneys are unaware that commercial general liability (CGL) insurance policies may provide coverage for property damage and personal injury arising from defective construction. And such coverage is not limited to losses incurred by property owners - it may be available for other contracting parties as well. 

Perhaps the reluctance to consider CGL coverage arises from older cases - especially federal court cases - that narrowly interpreted CGL policies' coverage for losses arising from defective construction. Older cases of Georgia state courts provided conflicting and confusing guidance about such coverage. More recently, however, the Supreme Courts of several states, including Georgia, have begun a concerted effort to clarify the law in this area. While these cases are clearly favorable for litigants seeking coverage, the courts continue to emphasize that the analysis requires a careful consideration of the language of CGL policies and applicable endorsements. 

Tags:  cgl  commercial  coverage  general  insurance  liability  policies 

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Simple Negligence and Economic Losses Don't Mix in Georgia

Posted By Stacey A. Carroll, Carroll Law Firm, LLC, Thursday, March 20, 2014
Every business litigator frequently confronts claims of economic losses, particularly lost profits. And every such claim is typically met with a standard arsenal of defenses: the profits alleged to have been lost are too speculative to be recovered, or the losses were caused by something other than the defendant's conduct. But there is one defense that, by its nature, can spell complete damnation for an economic loss recovery when it is premised on a claim of negligence-Georgia's economic loss rule. Although some form of the rule prevails in every state, Georgia courts have bestowed unusual austerity and breadth upon the doctrine, doing so in somewhat unpredictable fashion. This article briefly traces the evolution of the economic loss rule in Georgia, sets out the current state of the law, and concludes by addressing whether Georgia courts should reverse course and restrict the doctrine's application.

Tags:  economic  litigation  loss  negligence  profits 

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