Scottsdale Insurance Co. v. R.I. Pools, Inc.,

2010 U.S. Dist. LEXIS 99156 (D. Conn. Sept. 22, 2010)

Scottsdale Insurance Co. v. R.I. Pools, Inc., 2010 U.S. Dist. LEXIS 99156 (D. Conn. Sept. 22, 2010), concerned insurance coverage for underlying claims brought by owners of swimming pools constructed by the policyholder. Id. at *2. The insurer defended the policyholder subject to a complete reservation of rights and sought a declaratory judgment that it owed no duty to defend or indemnify the policyholder under CGL policies in connection with the underlying suits. Id. at *2, *6-*7. The CGL policies covered property damage that was “caused by an ‘occurrence’” and “occurrence” was defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” Id. at *11. The court considered New York and Connecticut case law before holding that “although an accident can be a consequence of faulty workmanship, faulty workmanship alone is not an accident.” Id. at *19. Accordingly, the CGL policies did not cover the claims against the policyholder for faulty workmanship and summary judgment was granted in favor of the insurer. Id. at *19-*20.