Ohio Northern University v. Charles Construction Services, Inc.Annotate this Case
At issue was whether a general contractor’s commercial general liability (CGL) policy that is nearly identical to the one considered in Westfield Insurance Co. v. Custom Agri Systems, Inc., 979 N.E.2d 269 (Ohio 2012), covers claims for property damage caused by a subcontractor’s faulty work.
The Supreme Court resolved the issue by applying the holding of Custom Agri which provides that property damage caused by a subcontractor’s faulty work is not an “occurrence” under a CGL policy because it cannot be deemed fortuitous. The Court then reversed the judgment of the court of appeals, which reversed the trial court’s conclusion that the insurer in this case had no duty to defend the CGL policy owner, a general contractor. The Supreme Court held that the insurer was not required to defend the insured against suit by the property owner or indemnify the insured against any damage caused by the insured’s contractor.