No CGL coverage for excessive consent judgment seeking damages for contractor’s defective work.

In a suit for insurance coverage by a homeowner as assignee of the contractor’s claim for coverage against a CGL carrier, the North District Court of Florida held that where the claimant’s alleged defects, in the form of replacement of improper or defective materials, improper installation and use of materials that do not comport with building codes and plan specification, such claims are not property damage within the meaning of the policy. The court also concluded that, even if coverage had been triggered, the consent settlement could not be enforced against the carrier because the plaintiff had failed to apportion between covered and non-covered damages and the agreement was excessive or collusive where there was no effort on the part of the contractor to limit the damages. The opinion offers several avenues for attacking consent judgments after the carrier has failed to defend and provides ample ammunition for defeating suspect coverage claims in the area of contractor liability.

_{Case Law Alerts, 1st Quarter, January 2016}

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