Defective construction not an "occurrence" in Connecticut.

The United States District Court for the District of Connecticut held that 19 claims and suits alleging defective construction of swimming pools did not state an "occurrence" under the CGL policy.

The insured built high-end swimming pools in Connecticut. The swimming pools cracked and failed: their walls and floors cracked. During the insured’s attempted repairs, the appurtenant structures and surrounding landscaping were damaged. Nineteen pool owners made claims and/or filed lawsuits against the insured pool builder.

Meager & Geer persuaded the Chief Judge of the District of Connecticut that defective construction is not an "occurrence." There was no published or precedential Connecticut case law. Meagher & Geer showed that the courts in Connecticut’s backyard – New York, New Jersey, Massachusetts, and Pennsylvania – all held that resulting damages to the insured’s work is not caused by an "occurrence" or "an accident." An "occurrence" implied a degree of fortuity that was not present in the claims and suits for defective construction. The damages to the appurtenant structures and landscaping were likewise not caused by an "occurrence." The nature of the repairs could not create coverage where none existed. The subcontractor exception to the "your work" exclusion did not manufacture coverage under the CGL policy’s insuring agreement. Courts in Pennsylvania, Massachusetts, New York, and New Jersey had already considered and rejected such an argument.