Supreme Services and Specialty Co., Inc. v. Sonny Greer, Inc.

Summary

The Louisiana Supreme Court reviews whether a commercial general liability policy covers damage caused by defective concrete work performed by an insured's subcontractors. The court holds that the policy's work-product exclusion unambiguously bars coverage for repairing or replacing the defective concrete slab itself, and that the products-completed operations hazard provision does not apply because no other property or third party was injured. The court reverses the court of appeal and reinstates the trial court's summary judgment for the insurer.

Holdings

1. The CGL policy unambiguously excluded coverage for damage to the concrete slab that had to be repaired or replaced because Greer or its subcontractors performed defective work.
2. The work-product exclusion and products-completed operations hazard provision were not inherently contradictory or ambiguous.
3. AXA was entitled to summary judgment because the policy afforded no coverage for the claimed damage as a matter of law.

Questions Presented

1. Whether the CGL policy's work-product exclusions barred coverage for damage to concrete slabs defectively constructed by the insured or its subcontractors.
2. Whether the products-completed operations hazard provision created an ambiguity or restored coverage for the defective concrete work.
3. Whether the insurer was entitled to summary judgment as a matter of law.

Disposition

reversed