Holding: CGL Subcontractor Exemption to Exclusion Could Be Covered "Occurrence".

   In the case of Architex Ass'n v. Scottsdale Ins. Co., Download Architex Ass'n v. Scottsdale Insurance Co. (Miss. Opinion Filed Feb. 11, 2010) also published as 27 So. 3d 1148, 1160-62 ¶¶ 28-33 (Miss. 2010)(subscription required to access Southern Reporter), the Supreme Court of Mississippi confronted the subcontractor exception to a general exclusion for a contractor's defective work, under CGL Form "© 1997".  The Supreme Court of Mississippi held that a subcontractor's defective work could in certain circumstances fall within the policy meaning of a covered "occurrence".

   The Court held in part:

The subject policy unambiguously extends coverage to Architex for unexpected or unintended "property damage" resulting from negligent acts or conduct of a subcontractor, if not excluded by other applicable terms and conditions of the policy not at issue in this appeal....  This Court concludes that under Scottsdale's CGL policy, the term "occurrence" cannot be construed in such a manner as to preclude coverage for unexpected or unintended "property damage" resulting from negligent acts or conduct of a subcontractor, unless otherwise excluded or the insured breaches its duties after loss.

Architex Ass'n v. Scottsdale Ins. Co., 27 So. 3d at 1162 ¶¶ 32-33 (Miss. 2010).

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