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Auto Owners Ins. Co. v. Gay Constr. Co.

The business risk exclusion in the parties' commercial liability policy barred the plaintiff's first-party claim seeking reimbursement costs associated with the repair and correction of a subcontractor's faulty workmanship on a newly constructed restroom during the reconstruction of a swimming pool.

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Gay Construction Company GCC, a general contractor, filed suit against Auto Owners Insurance Company to recover directly as an additional insured under the commercial liability CGL policy issued by Auto Owners to Dai-Cole Waterproofing Company, Inc. Dai-Cole, GCC’s subcontractor on a project. Specifically, GCC sought to recover from Auto Owners for costs associated with allegedly faulty workmanship by Dai-Cole. Auto Owners filed a motion for summary judgment, and the trial court denied the motion. Auto Owners filed an application for interlocutory review, which this Court granted. For the reasons that follow, we reverse.

To prevail at summary judgment under OCGA § 9-11-56, the moving party must demonstrate that there is no genuine issue of material fact and that the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law. On appeal from the grant of summary judgment this Court conducts a de novo review of the evidence to determine whether there is a genuine issue of material fact and whether the undisputed facts, viewed in the light most favorable to the nonmoving party, warrant judgment as a matter of law.1

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