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Pending before the Texas Supreme Court is a significant construction defect coverage case, Lamar Homes, Inc. v. Mid-Continent Casualty Co., which could have national implications. This is one of the few cases accepted by a state supreme court to resolve ongoing disputes between policyholders and insurers in lower courts regarding whether construction defect claims seeking repair costs or diminution in value (i.e., economic losses) involve an occurrence or property damage covered by a commercial general liability (CGL) policy.

While this case certainly will impact the handling of such construction defect claims in Texas, it also could work to shift the weight of authority on the related occurrence and property damage issues nationwide. As a result, claim professionals and coverage counsel for both policyholders and insurers from all over the country have been turning their eyes to this case.

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