West Virginia “property damage” caused by an “occurrence,” subcontractor work exception to “your completed work” exclusion, and trigger

In Simpson-Littman Construction, Inc. v. Erie Ins. Prop. & Cas. Ins. Co., No. 3:09-0240 (S.D. W.V. Sept. 13, 2010), claimant Bush hired insured general contractor Simpson-Littman to build a house.  After completion, cracking developed throughout the home allegedly as a result of defective site preparation and soil compaction performed by subcontractors.  Bush sued Simpson-Littman for breach of contract and negligence seeking damages for repair of the home.  Simpson-Littman’s CGL insurer, Erie, denied coverage and Simpson-Littman filed suit.  While Erie did not dispute that the damage to the house constituted physical injury to tangible property “property damage,” it contended that it was not caused by an “occurrence.”  In rejecting Erie’s no “occurrence” argument, the federal district trial court held that the settlement of the soil under the Bush house caused by subcontractor negligence constituted an “occurrence.”   The court then held that the subcontractor work exception to the “your work” exclusion applied.   Finally, while the court held that an injury-in-fact trigger would apply, there were disputed issues of fact as to whether any property damage occurred during the policy period.