Michigan “property damage” caused by an “occurrence”

In Houseman Construction Co. v. Cincinnati Ins. Co., No. 1:08-CV-719 (W.D. Mich. April 23, 2010), insured Houseman was the general contractor for a grocery store. Several years after completion of the store, the owner sued Houseman for breach of contract seeking damages for the costs to repair or replace a sinking floor. The court first held that the sinking of the floor constituted physical injury to tangible property “property damage.” The court then states that, because the policy provides coverage for claims rather than causes of action, that the cause of action was breach of contract rather than negligence was irrelevant. The court then held that, while the “property damage” to the floor itself–the defective work–was not caused by an “occurrence,” any property damage to other parts of the store which the insured could establish, including loss of use of the store, would constitute “property damage” caused by an “occurrence.”