9/20/2007

On August 31, 2007, the Texas Supreme Court issued its opinion in Lamar Homes, Inc. v. Mid-Continent Casualty Company, Cause No. 05-0832. Vincent and Janice DiMare sued Lamar Homes and its subcontractors (hereinafter “Lamar Homes”) alleging that Lamar Homes defectively constructed the DiMare’s home. Lamar Homes purchased a Commercial General Liability Policy (CGL) from Mid-Continent Casualty to insure the construction of the DiMare’s home. Lamar Homes tendered its defense to Mid-Continent, but Mid-Continent refused to accept defense of the claim because it felt that the policy did not cover damages to the DiMare’s home due to defective construction that did not result in other property damage or bodily injury.

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