Amerisure Mutual Insurance Company v. Amelia Island Company
2012 U.S. App. LEXIS 5412
11th Cir.2012Background
- Amelia-Island contracted with Auchter, a general contractor, to build an inn; Auchter subcontracted Register to install the roof.
- Tiles were concrete barrel tiles installed over a substrate, requiring precise fastening and wind-resistance as per Florida Building Code.
- Amelia paid for roof tiles stored on site; tiles were installed by Register from November 1997 to January 1998.
- Beginning in 2002, roof tiles began falling off; Hurricanes in 2004 worsened the roof failure, causing more damage.
- Amelia maintained a state court judgment against Auchter for $2,167,313.67 arising from alleged defective roofing workmanship; Amerisure insured Auchter under CGL/UL policies and defended under reservation of rights.
- District court granted Amerisure summary judgment, holding the damages were not “property damage” under the CGL PC0H policy; Amelia’s cross-motion was denied; the case proceeded as a declaratory judgment action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a subcontractor’s defective work can trigger CGL property damage coverage | Amelia: damages to the completed project due to defective work are property damage | Amerisure: costs to repair defective work are not property damage under Florida law | No property damage here; coverage denied |
| Whether the claim seeks property damage or merely repair costs of defective work | Amelia: tiles damaged by installation constitute property damage | Amerisure: claim is for cost of repairing/substituting defective work, not damage to other property | Claim is for cost of repairing defective work, not property damage under CGL/PCOH |
| What governing Florida authorities control interpretation (J.S.U.B., Pozzi) | Pozzi/J.S.U.B. support coverage for non-defective components damaged by faulty installation | Pozzi/J.S.U.B. support no coverage unless property damage to other nondefective property | Court follows J.S.U.B. and Pozzi to distinguish coverage for property damage vs. repair costs; no coverage here |
| Impact of your-work exclusion and subcontractor exception on outcome | Amelia argues exclusion does not bar coverage due to nondefective tiles and subcontractor exception | Auscher’s exclusions, including your-work, do not apply if sub’s work causes property damage | Exclusions not dispositive since no property damage occurred; district court affirmed |
Key Cases Cited
- United States Fire Ins. Co. v. J.S.U.B., Inc., 979 So.2d 871 (Fla. 2007) (post-1986 CGL with PCOH covers subcontractor‑caused damage to completed project unless excluded)
- Auto-Owners Ins. Co. v. Pozzi Window Co., 984 So.2d 1241 (Fla. 2008) (depends on whether defective windows or faulty installation damage windows or surrounding property)
- West Orange Lumber Co. v. Indiana Lumbermens Mut. Ins. Co., 898 So.2d 1147 (Fla. 5th Dist. Ct. App. 2005) (costs to replace defective siding not property damage)
- Moore & Assocs., Inc., 216 S.W.3d 302 (Tenn. 2007) (faulty workmanship causing water intrusion can be property damage)
- Auto-Owners Ins. Co. v. Pozzi Window Co. (cited within Pozzi), Not separately listed here (N/A) (discussed in Pozzi to illustrate the property damage distinction related to nondefective components damaged by installation)