Supreme Court Affirms Coverage for Construction Defects

The New Jersey Supreme Court has affirmed the Appellate Division’s pro-policyholder decision in Cypress Point Condominium Association v. Adria Towers, L.L.C. confirming broad coverage for construction defects. In a scholarly decision, the Supreme Court traced the development of the relevant provisions of the general liability insurance policy, examined decisions from other jurisdictions, and reviewed law review articles and dictionaries in order to find coverage for the consequential damages arising out of construction defects.