The appellant insurers appealed a summary judgment finding them liable under a Commercial General Liability policy to indemnify condominium owners for extensive foundation damage caused by the insured general contractor's negligence.
The contractor had negligently installed a dewatering system that washed away the natural foundation beneath the building.
The Court of Appeal dismissed the appeal, holding that the damage to the natural foundation and structural columns constituted third-party property damage, not merely damage to the contractor's own work product.
Furthermore, the negligent installation that caused the damage was an 'accident' and therefore an 'occurrence' within the meaning of the policy.
