Mississippi Supreme Court decision clarifies insurance coverage related to construction defects. 02.11.10.

The Mississippi Supreme Court, in Architex Association, Inc. v. Scottsdale Insurance Co., No. 2008-CA-01353-SCT, (Click here to review the Court's opinion) held that a construction defect may constitute an “occurrence” under Commercial General Liability (“CGL”) insurance coverage “when property damage is proximately caused by an accident (an inadvertent act)”. In doing so, the Court effectively undoes the ACS case, which had held that, under Mississippi law, a construction defect was not an “occurrence” under standard CGL policies. The ACS ruling by the Fifth Circuit had essentially eliminated recovery for construction defects and even resulting damage caused by such defects under CGL policies issued in Mississippi. For more information, contact Jason Weeks who practices in the areas of construction law, including construction defects, construction litigation and business litigation. 02.11.10.