Town & Country Property, L.L.C. v. Amerisure Insurance Co., 111 So. 3d 699

T & C sued Amerisure and Amerisure Mutual and Jones-Williams in Jefferson County for payment of a $650,100 judgment under a CGL policy.
The underlying judgment against Jones-Williams arose from faulty construction of a Town & Country facility completed in 1999.
Amerisure initially agreed to defend but later refused indemnity, prompting this coverage dispute under § 27-23-2 Alabama direct action statute.
The trial court granted summary judgment for Amerisure, holding faulty construction is not an ‘occurrence’ under the CGL policy.
This Court affirmed in part, remanding to determine whether any damages were for non-defective property or personal property affected by the faulty work.
On remand, the trial court found only $600 in specific personal-property damage (ceiling tiles) due to an occurrence; remaining damages were treated as repair/replacement costs for faulty work and reversed on remand for revision.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether faulty workmanship itself constitutes an 'occurrence'.	T & C asserts fault is an occurrence causing property damage.	Amerisure argues faulty workmanship alone is not an occurrence under CGL.	Faulty workmanship alone is not an occurrence.
Whether damages for repairing or replacing faulty construction are covered.	Damages for defective work should be covered as property damage arising from an occurrence.	Costs to repair/replace faulty work are excluded as the loss is the insured’s own work.	Damages for repairing/replacing faulty work are not covered; the judgment to that extent is affirmed.
Whether any damages for damaged personal property fall within the subcontractor exception to the 'Your Work' exclusion.	Some damages to non-defective personal property could be covered if caused by an occurrence tied to subcontractor work.	Remand testimony shows no proven costs for personal-property damage except a minimal ascertainable amount.	On remand, only $600 for ceiling tiles was proven as property damage from an occurrence; rest of damages were not supported.

Warwick Development Co. v. United States Fidelity & Guaranty Co., 446 So.2d 1021 (Ala.1984) (faulty workmanship alone not an occurrence; requires damage to other property)
Moss v. Champion Ins. Co., 442 So.2d 26 (Ala.1983) (occurrence when defective workmanship causes damage to other property via continuous exposure)
United States Fidelity & Guar. Co. v. Bonitz Insulation Co. of Alabama, 424 So.2d 569 (Ala.1982) (occurrence principle: damage to non-defective property may fall to insurer)