Contractors across the nation will be watching the Mississippi Supreme Court on Oct. 5 to see if it upholds a Rankin County Circuit Court decision that ruled an insurer is not responsible for subcontractor performance under a contractor’s commercial general liability policy.
In Architex Association Inc. v. Scottsdale Insurance Co., Architex alleges that “an unintended construction defect by a subcontractor constitutes an occurrence that triggers coverage under a contractor’s CGL insurance policy,” according to a statement from the law firm of Burr & Forman LLP, Jackson, Miss., which represents Architex. The lawsuit alleges that Arizona-based Scottsdale has a “duty to investigate and defend” Architex in the matter. In short, the contractor says it wants Scottsdale to fulfill the terms of the policy it paid for.