Weedo v. Stone-E-Brick, Inc.
Supreme Court of New Jersey
405 A.2d 788 (1979)
Stone (defendant), a masonry subcontractor, performed faulty work on two separate jobs that required replacement, and its CGL insurer Pennsylvania National denied coverage for the repair costs, citing exclusions for breach of warranty and for liabilities Stone assumed under contract, including express or implied warranties of workmanlike performance. The appeals court found the exclusions ambiguous and construed them in Stone's favor, requiring coverage, and the New Jersey Supreme Court granted review.
Whether a comprehensive general-liability policy indemnifies the insured against damages for breach of contract and faulty workmanship when the damages claimed are the cost of correcting that faulty workmanship.