Dennis Teufel v. American family/kerry Hanson

Summary

The court held that a homeowner’s contractual-liability exclusion did not eliminate the insurer’s duty to defend a builder-vendor against the home buyer’s negligent-excavation claim. The negligence claim was based on an independent common-law duty to construct the home with reasonable care, not liability required by or originating from the purchase contract. The court therefore reversed the summary judgment concerning the applicable policy and remanded for further proceedings.