Absent Damage to Other Property, Defective Construction Not “Property Damage” in Massachusetts.

In Lessard v. R.C. Havens & Sons, Inc., No. 23-P-346 (Mass. Ct. App. 8/14/2024), insured general contractor Havens was sued by homeowner Lessard for damages because of alleged constructions defects discovered prior to completion of the home.  A judgment was entered against Havens for the costs to repair or replace specific defectively constructed elements of the home.  Haven’s CGL insurer Main Street America Assurance Company intervened in the suit seeking a judicial declaration of no duty to indemnify Havens.  The trial court entered summary judgment for Main Street.  The intermediate court of appeals affirmed, holding that defective workmanship, standing alone, does not constitute “property damage.”  The court states that this is an issue of first impression in Massachusetts.   The court rejected the insured’s argument that the judgment against Havens was not limited to the costs to repair or replace the defectively constructed elements but also included amounts to repair damage to non-defective components of the home damaged by the defective workmanship; specifically, wall cracks caused by structural defects and water damage caused by roof deck and siding defects.   The court states that there was nothing in the record regarding costs to repair the cracks or water damage.