In Architex Association, Inc. v. Scottsdale Ins. Co., No. 2008-CA-01353-SCT (Miss. Feb. 11, 2010), Architex was hired by CIS to act as general contractor for the construction of a hotel. Architex subcontracted some of the work. CIS sued Architex alleging breach of contract and negligence in constructing the hotel. Extrinsic evidence included the alleged failure to install structural rebar in the foundation concrete. Scottsdale, Architex’ CGL insurer, denied a defense based on no “occurrence.” Architex filed a third party complaint against Scottsdale. The trial court entered summary judgment for Scottsdale relying on Omnibank and ACS Construction. On appeal, the Mississippi Supreme Court reversed, holding that the policy language, the subcontractor work exception in particular, along with a separate premium for subcontractor work, unambiguously provides that property damage resulting from negligent subcontractor work constitutes “property damage” caused by an “occurrence.”
