Pennsylvania Supreme Court Denies Review of Faulty Workmanship Decision
Last week, the Pennsylvania Supreme Court let stand the appellate decision in Indalex, Inc. v. National Union Fire Insurance Co. of Pittsburgh, Pa., which held that mold related health problems and property damage allegedly arising from defective doors and windows constituted an “occurrence,” triggering coverage under the door and window manufacturer’s commercial general liability policy. In a one-page order, the state’s high court declined to take up the insurer’s appeal. Although not a decision on the merits, the order should help to reverse a trend in Pennsylvania toward limiting the scope of commercial liability insurance in product defect cases. It may also signal that Pennsylvania would join the majority of courts in other states that have refused to apply an overly restrictive interpretation of “occurrence” and the faulty workmanship exclusion, where the insured is alleged to have caused personal injury or property damage from its purportedly defective product.