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Hartrick v. Great American Lloyds Insurance Company

Determining whether an injury is accidental inquires into both the insured's intent and the reasonably foreseeable effect or consequences of the insured's conduct; to be accidental, an effect could not reasonably have been anticipated from the conduct that produced it, and the insured cannot be charged with the design of producing the effect.

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OPINION ON MOTION FOR REHEARING

Appellants, Janice K. Hartrick and C. Michael Cathey, have filed a motion for rehearing and motion for rehearing en banc. We deny rehearing, but withdraw our opinion and judgment of August 17, 2000, and issue this new opinion in its stead. Accordingly, we deny the motion for rehearing en banc as moot. *fn2

This is an insurance coverage case, decided on cross-motions for summary judgment, in which the trial court construed a commercial general liability policy in favor of appellee, Great American Lloyds Insurance Company (Great American), and against Hartrick and Cathey. Hartrick and Cathey had purchased a house built by Great American’s insured, Claremont Building Corporation. After discovering construction defects in the house, Hartrick and Cathey sued Claremont and recovered a jury verdict and $145,000 judgment for Claremont’s breach of its implied warranties of good and workmanlike construction and suitability for habitation. Hartrick and Cathey then sued Great American in this action, as assignees of Claremont’s policy with Great American, seeking indemnity for the judgment in the underlying case. The trial court found no coverage, and rendered summary judgment in favor of Great American. We address whether Claremont’s liability for defective construction work triggered an “occurrence” under the Great American policy. We conclude it did not and affirm.

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