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Diminution of Value of Home Due to Contractor's Negligence and Faulty Workmanship is Not Covered Under CGL Policy, No Matter How the Damages Are Characterized (click here for full story)

at Wisconsin Supreme Court

case No. 97-2192

Argued January 5, 2000--Decided July 7, 2000

Charles G. Vogel and Kathleen A. Vogel, Plaintiffs, v. Gilbert Russo, an individual d/b/a Russo Builders, and Milwaukee Mutual Insurance Company,

Summary:

The bulk of the damages awarded by the jury in this case were repair or replacement damages attributable to contractor's faulty workmanship, for which the CGL policy clearly does not provide coverage. The circuit court's characterization of contractor's negligence as tantamount to gross negligence at common law is understandable under the facts of this case, but it does not convert otherwise uncovered damages into covered damages under the insurance policy.