Insurance : Faulty Workmanship – Coverage

Where a construction company settled a lawsuit involving a subcontractor’s faulty workmanship of an Arkansas home, under Arkansas law at the time of the suit was filed the Arkansas Supreme Court had ruled that a contractor’s commercial general liability insurance policy did not cover faulty workmanship of a subcontractor and even though the Arkansas legislature subsequently passed a law essentially overruling the Arkansas Supreme Court’s decision, there was a presumption against applying the statute retroactively.

Judgment is affirmed.

J-McDaniel Construction Co. v. Mid-Continent Casualty Company, et al. (MLW No. 66746/Case No. 13-2673 — 6 pages) (U.S. Court of Appeals, 8th Circuit, Smith, J.) Appealed from the U.S. District Court, Eastern District of Iowa, Miller, J.)  (Wm. Dean Overstreet, Little Rock, Arkansas, argued for appellant, Thane J. Lawhon, on the brief) (Johnathan D. Horton, Little Rock, Arkansas, argued for appelle, Edwin L. Lowther Jr. and Gary D. Marts, Jr., on the brief).

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