John Dostart v. Columbia Insurance Group

Summary

The court held that the Dostarts’ unsatisfied consumer-fraud judgment was not covered by the contractor’s commercial-general-liability policy because the underlying conduct was not an occurrence and the claimed losses did not constitute covered property damage. The damages were limited to completing the home and consequential costs from the contractor’s failure to complete it, effectively converting the policy into a performance bond. The court vacated the court of appeals decision, reversed the district court, and remanded for entry of summary judgment in favor of the insurer.