On July 13, 2017, the U.S. Court of Appeals for the Seventh Circuit ruled in Westfield Insurance Company vs. National Decorating Inc., Case No. 16-1439 (7th Cir. 2017) that a general liability insurer had a duty to defend its insured subcontractor, and additional insureds owner and general contractor, against allegations that the subcontractor’s defective work damaged other parts of a new construction building. The Court held that allegations of the subcontractor’s improper application of exterior waterproof coatings, resulting in water incursion throughout the building, constituted property damage as a result of an occurrence, under Illinois law.
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