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Mt. Hawley Insurance Co. v. Slay Engineering

Court: WD Tx  06/13/2019  Broad Breach of Contract Exclusion Applied to Preclude Duty to Defend Contractor

On Motion for Reconsideration, a court of the Western District of Texas agreed with the commercial general liability insurer that a breach of contract exclusion, which excluded coverage for any claim or suit for property damage "arising directly or indirectly out of . . . breach of express or implied contract or breach of express or implied warranty" applied to preclude insurer's duty to defend a contractor from a defective construction lawsuit, despite finding the breach of contact exclusion ambiguous when interpreted together with the policy's subcontractor exception to the "damage to your work" exclusion.

commercial general liability insurance policy, breach of contract exclusion, damage to your work exclusion, subcontractor exception, duty to defend, ambiguity, faulty workmanship, breach of contract

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