Allied Property & Casualty Ins. Co. v. Metro North Condominium Association

Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in action seeking declaration that plaintiff’s standard commercial general liability policy did not cover losses incurred by insured in settlement of underlying lawsuit where insured was sued for breach of warranty of habitability arising out of work performed by insured when installing windows that resulted in condominium association incurring extensive water damages to parts of condominium building and to unit owners’ personal property. Applicable measure of damages for breach of implied warranty of habitability in instant case was cost of repairing defectively installed windows, and provisions in relevant policy excluded coverage for costs associated with repairing or replacing insured’s defective work. As such, where language in settlement agreement linked proceeds of settlement to costs associated with insured’s defective work, plaintiff had no duty to indemnify insured based on language in settlement.