New Jersey “occurrence”

In Pennsylvania Nat’l Mut. Cas. Ins. Co. v. Parkshore Dev. Corp., No. 09-3821 (3rd Cir., Dec. 10, 2010)(unpublished), insured Parkshore was the developer and general contractor of a condominium project for which it used subcontractors to perform all of the work.  Parkshore was sued post-completion by the homeowners association seeking damages for moisture penetration property damage to common elements, alleging breach of contract, negligence, breach of warranties, and statutory consumer fraud.  Parkshore’s CGL insurer, Penn National, denied a defense and Parkshore filed a declaratory judgment action.  The federal trial court entered summary judgment for Penn National.  On appeal, the U.S. Court of Appeals for the Third Circuit affirmed.  Applying New Jersey law, the court held that, whether the work was performed by the insured general contractor or one of its subcontractors, where the entire project was the insured’s work, absent any damage to property other than the project itself, there was no “occurrence.”  The opinion does not quote or otherwise refer to the subcontractor work exception to the “your work” exclusion.