2010AP347 General Casualty Company of Wisconsin v. Rainbow Insulators Inc., et al.

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Wisconsin Court of Appeals
CIVIL UNPUBLISHED
Insurance
Duty to defend

This is a duty-to-defend insurance case in the construction context, involving defects in the construction of a condominium building that caused acoustical problems for residents.

KBS was the general contractor for the project and hired subcontractors that included E&A Enterprises, Inc. KBS filed a third-party complaint against E&A and its insurer, Acuity, alleging that E&A breached its contract with KBS through faulty installation of metal resilient channels that act as sound absorbers, and by refusing to correct the faulty installation.

KBS claims that these errors resulted in two categories of damage: the loss of use and enjoyment of the condominium units by residents, and the physical destruction of ceilings required to fix the noise problem.

Acuity moved for summary judgment, asserting that its policies do not cover KBS’s allegations against E&A. The circuit court granted summary judgment to Acuity, and E&A appeals the court’s order.

The issue presented is whether KBS’s complaint alleges facts that, if proven, would result in coverage for E&A under Acuity’s insurance policy, thus triggering Acuity’s duty to defend E&A. We conclude that although both of the policies at issue provide initial coverage, the “your work” exclusion in one form and the “contract” exclusion in the other preclude coverage. We therefore conclude that Acuity has no duty to defend E&A and affirm. Not recommended for publication in the official reports.

2010AP347 General Casualty Company of Wisconsin v. Rainbow Insulators Inc., et al.
Dist IV, Dane County, Moeser, J., Blanchard, J.
Attorneys: For Appellant: McCardell, William E., Madison; Gendreau, Chad R., Madison; For Respondent: Grady, Lance S., Waukesha; Miller, Daniel K., Waukesha

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