Cogswell Farm Condominium Ass’n v. Tower Group, Inc.

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Petitioner Cogswell Farm Condominium Association filed a declaratory judgment action with respect to two exclusions in insurance policies issued by respondents Tower Group, Inc. and Acadia Insurance Company. The trial court held that the two exclusions at issue precluded coverage for petitioner's underlying lawsuit against Lemery Building Company, Inc. In 2009, Cogswell sued Lemery and others, alleging negligence, breach of contract, and negligent supervision in the construction of 24 residential condominium units. Cogswell asserted that the "weather barrier" components of the units – including the water/ice shield, flashing, siding, and vapor barrier – were defectively constructed and resulted in damage to the units due to water leaks. Because the units were sold at different times and the policies were in effect during two different time periods, the Supreme Court concluded that the trial court erred in holding that one policy exclusion served as a bar for coverage for each unit after it was sold. Furthermore, the Court found that the other exclusion was subject to more than one reasonable interpretation, the Supreme Court concluded the trial court erred in granting respondents summary judgment with respect to that exclusion. The trial court was reversed and the case remanded for further proceedings. View "Cogswell Farm Condominium Ass'n v. Tower Group, Inc." on Justia Law