Cases

In a coverage dispute arising from defective construction work, the Western District of Texas recommended denying the insurer’s summary judgment motion and granting the claimant’s cross-motion, finding a duty to defend under a CGL policy. The court held that allegations of defective foundation work causing damage to other parts of the home constituted “property damage,” triggering potential coverage under Texas law. The court further found that the insurer failed to establish that all claims fell outside coverage or within policy exclusions. Notably, the “damage to property” and “your work” exclusions did not bar coverage because the underlying pleadings alleged damage to property beyond the insured’s own work. The court also concluded that any determination of the duty to indemnify was not yet ripe.