Illinois “property damage” caused by an “occurrence”

In Country Mut. Ins. Co. v. Carr, No. 4-06-0589 (Ill. App. 4 Dist. March 19, 2007), insured contractor Carr was sued by a homeowner alleging that Carr or his subcontractor negligently placed improper backfill around the basement walls of plaintiff’s home and then negligently operated heavy equipment around the basement walls which resulted in sudden physical damage to the walls.  Carr’s CGL insurer, Country Mutual, denied a defense and filed suit seeking a declaratory judgment that it had no duty to defend or indemnify.    The trial court granted Country Mutual’s motion for judgment on the pleadings.   The Illinois intermediate appellate court, Fourth District, reversed. The court first held that the physical injury to plaintiff’s basement walls constituted “property damage.”  The court then held that because the negligence causes of action did not allege that Carr expected or intended the damage to the basement walls, the underlying complaint alleged an “occurrence.”