California Appellate Court Rejects Argument that Policy Coverage is Triggered by Date that Claimant had Right to File Lawsuit, Rather than Date of Damage

By: Musick, Peeler & Garrett LLP.

A recent California appellate court decision rejected the argument often raised by insurers in construction defect cases that policies providing ongoing operations coverage do not extend to third party claims filed after operations have been completed.

Specifically, in McMillin Management Services, L.P. v. Financial Pacific Ins. Co. (2017) 17 Cal.App.5th 187, Lexington Insurance issued policies to two named insureds that were subcontractors on a project on which McMillin was the general contractor. Read more.