A federal district court in Arkansas has certified two questions to the Arkansas Supreme Court addressing coverage for breach of contract in a construction defect claim. Columbia Insurance Group, et al. v. Cenark Project Management Services, Inc., et al., 2015 U.S. Dist. LEXIS 127573 (E.D. Ark. Sept. 23, 2015). The court has asked that the Supreme Court consider:
- Whether faulty workmanship resulting in property damage to the work or work product of a third party (as opposed to the work or work product of the insured) constitutes an “occurrence”; and
- If such faulty workmanship constitutes an “occurrence,” and an action is brought in contract for property damage to the work or work product of a third person, does any exclusion in the policy bar coverage for this property damage?