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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.

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