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Contracts Keyed to Templin
242-44 E. 77th St., LLC v. Greater N.Y. Mut. Ins. Co.
Citation:
815 N.Y.S.2d 507 (App. Div. 2006)Facts
The plaintiff owned a building that sustained damage when construction work on an adjoining property caused the plaintiff’s building to settle and shift, resulting in cracking and bulging of interior and exterior areas. The plaintiff submitted a claim under its “Businessowners Special Property Coverage Form” policy, which covered “direct physical loss of or damage to Covered Property… caused by or resulting from any Covered Cause of Loss.” The defendant insurance company denied coverage based on two exclusions: one for “settling, cracking, shrinking or expansion” and another for “negligent work.” The plaintiff’s engineer found that the damage was caused by poorly installed or improperly shored underpinning due to the adjoining owner’s construction activities, and that these defects did not exist before the demolition work on the adjoining property.
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