Georgia “occurrence”

In Allstate Ins. Co. v. Harkleroad, No. 409CV011 (S.D. Ga. May 24, 2010), insured Claxton purchased, renovated, and then resold a home to Harkleroad. Several years later, after discovering extensive hidden damage, Harkleroad sued Claxton alleging that Claxton failed to disclose pre-exiting moisture related damage. The complaint included causes of action for breach of contract, intentional deception fraud, entire want of care misrepresentation, and gross negligence misrepresentation. The complaint also included a claim for punitive damages. Claxton’s CGL insurer, Allstate, defended under a reservation of rights and filed suit seeking a declaratory judgment of no duty to defend or indemnify. The federal district trial court held held that, while the allegations supporting the breach of contract and gross negligence misrepresentation causes of action constituted an “occurrence,” the allegations supporting the intentional deception fraud, entire want of care misrepresentation, and punitive damages causes of action did not constitute an “occurrence.”