Georgia “occurrence”

In American Empire Surplus Lines Ins. Co. v. Hathaway Development Co., Inc.,  No. S10G0521 (Ga. March 7, 2011), insured plumbing subcontractor Whisnant was sued by general contractor Hathaway seeking damages for costs incurred by Hathaway in repairing damage to property other than Whisnant’s plumbing work resulting from Whisnant’s negligently performed plumbing work on three separate projects.  On one project, Whisnant installed a pipe smaller than called for in the contract.   On the other projects, Whisnant improperly installed pipes. After a default judgment was entered against Whisnant, Hathaway filed suit against Whisnant’s CGL insurer, American Empire, to collect on the judgment.  The trial court entered summary judgment for American Empire, finding no “occurrence.”  The intermediate appellate court reversed, finding an “occurrence.”  The Supreme Court of Georgia affirmed the intermediate appellate court.  The court held that, under Georgia law, “an occurrence can arise where faulty workmanship causes unforeseen or unexpected damage to other property.”