Supreme Court of Arkansas

Columbia Insurance Group, Inc., and Columbia Mutual Insurance Co., Inc., Petitioners v. Cenark Project Management…

April 28, 20162016 Ark. LEXIS 153

Summary

The court reaffirmed that the CGL policy at issue did not provide basic coverage for the homeowners’ breach-of-contract claim because the claimed damages represented economic losses from failure to perform the construction contract, even though the claim involved damage to property. Having determined that there was no coverage, the court declined to answer the two certified questions concerning faulty workmanship and policy exclusions, deeming them moot. Justice Danielson, dissenting, would have answered the certified questions and found potential coverage, while Justice Hart, dissenting, would have limited the court’s inquiry to the questions certified.