Georgia “occurrence” and exclusion j(5)

In QBE Ins. Co. v. Couch Pipeline & Grading, Inc., 692 S.E.2d 795 (Ga. Ct. App. 2010), Couch, the grading subcontractor for an office building, was sued by the general contractor which alleged that the grading over the building pad was defective in that Couch failed to remove a layer of unsuitable soil which it instead covered with good soil, such that the building pad could not be properly compacted.   The suit sought the costs to repair the defective grading.  QBE, Couch’s CGL insurer, filed suit seeking a declaratory judgment of no duty to defend or indemnify.  The state trial court denied QBE’s motion for summary judgment.  The intermediate appellate court reversed.  The court first held that, because there was no evidence Couch intended to prevent the building pad from being suitable to be properly compacted, its faulty workmanship constituted an “occurrence.”  However, the court then held that all of the defective grading fell within exclusion j.(5) for property damage to that particular part of real property on which the insured is performing operations.   Because the general contractor was not seeking damages for damage to any property beyond Couch’s defective grading, QBE was entitled to summary judgment.