Tag Archives: appellate

Insurance Policy Excludes Water Damage From Construction Defects

    The Sixth Circuit Court of Appeals ruled that an insurer was not obligated to pay for water damages to a condominium building because the insurance policy specifically excluded coverage for damages caused or resulting from building construction and design defects. TMW Enterprises, Inc. v. Federal Ins. Co., No. 09-1542, (6th Cir. Aug, 25, 2010). Substandard construction on an exterior wall allowed the water intrusion which resulted in damages of $4 million.

    After discovering the water damage and defects, the Plaintiff filed a claim with its insurer to cover the costs of repair. The insurer performed an inspection of the building but refused covered based upon this exclusion. Both the lower court and appellate court agreed with the insurer. The appellate court grappled with the interpretation of the policy, but finally determined that any other explanation of the policy language would render it ambiguous.

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NJ’s appellate court speaks up after Twin Rivers

News items of national interest regarding Condominium and Homeowner associations, compiled by the Community Associations Network

Last week a New Jersey appellate court decided Mazdabrook Homeowners Association v. Kahn, bringing to the fore once again the debate over the exercise of free speech in a private community-association setting
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